Iowa Soybean Association, Iowa Biodiesel Board reiterate need for full reallocation of lost SRE gallons

The Iowa Soybean Association and Iowa Biodiesel Board reiterated its call Sept. 17 for upholding the integrity of the Renewable Fuel Standard in response to the draft rule issued by U.S. EPA regarding the potential reallocation of recently granted small-refinery exemptions (SREs).

Included in the draft rule, EPA proposed reallocating 100 percent of the RFS exemptions, or only 50 percent of them, and also requested comments on the possibility of no reallocations.

Any reallocated volumes would be added to the 2026-’27 RFS blending volumes under the proposal.

“We appreciate the EPA’s thoughtful approach in addressing small-refinery exemptions that were inherited from the previous administration,” said Grant Kimberley, ISA’s senior director of market development and IBB executive director. “It’s critical, however, that the agency fully accounts for all waived gallons while also working quickly to finalize the 2026-’27 renewable volume obligation (RVO) proposal. Anything less than a full reallocation of any legitimate SREs, as the Trump administration promised at the end of its first term, would erode the integrity of the RFS.”

Kimberley said full reallocation will provide much-needed certainty for Iowa’s biodiesel producers and farmers, many of which are struggling economically due to lackluster growth as a result of uncertain federal policy.

“We look forward to a final rule that allows the biodiesel market to grow—supporting fuel producers, farmers and consumers,” he said.

Iowa is the nation’s leading biodiesel-producing state and soybean-oil producer.

The 2 billion pounds of soybean oil used to produce biodiesel in the state in 2024 were equivalent to the oil from nearly 178 million bushels of soybeans—or more than 30 percent of the state’s soybean crop.

According to a study by Decision Innovation Solutions, biodiesel contributes $123 million in labor income, $520 million in value added and $2.2 billion in total output (sales) to Iowa’s economy.

IBB represents the biodiesel industry in Iowa, from the farmers who grow the feedstock to production, distribution and end users.

Founded by ISA, IBB operates an independent organization and board.

The IBB works to promote the commercial and economic success of biodiesel in Iowa.

ISA is driven to deliver increased soybean demand through market development and new uses, farmer-focused research and results, timely information and know-how, and policy initiatives enabling farmers and the industry to flourish.