IRFA calls for full reallocation of small-refinery exemptions at EPA RFS hearing
- Iowa Renewable Fuels Association
- Oct 2
- 2 min read
The Iowa Renewable Fuels Association participated in the U.S. EPA’s public hearing Oct. 1 on the proposed Renewable Fuels Standard blending rule for 2026-’27.
As part of that rule, EPA is evaluating whether to reallocate 100 percent or 50 percent of small-refinery exemptions (SREs) granted for 2023 and 2024, as well as those anticipated for 2025.
During his remarks at the hearing, IRFA Executive Director Monte Shaw strongly urged the agency to finalize its proposal to reallocate 100 percent of the 2023-’25 SREs.
“The law requires EPA’s prime directive to be ensuring RFS blending levels are met,” Shaw said.
“Only full reallocation will maintain the integrity to the RFS and deliver meaningful benefits to rural America,” he added.
Shaw noted that while the delays and backlogs of processing the SRE requests were inherited by the current EPA, it is their duty to fully implement the RFS.
“IRFA strongly believes EPA should finalize its proposal to reallocate 100 percent of the exemptions over 2026-’27,” Shaw said. “We are concerned by reports that a 50 percent reallocation scheme is gaining steam. If EPA ultimately determines that 100 percent reallocation over 2026-’27 is not possible, the agency should not undermine the RFS with 50 percent reallocation. Instead, as an alternative, the EPA should reallocate 100 percent of the 2023-’25 exemptions over four years. This approach would have the same market impact in the short term as 50 percent reallocation but would still provide lasting support for American farmers and the biofuels industry.”
Shaw also commended EPA for proposing strong RFS blending levels.
“The originally proposed blending levels for 2026 and 2027 were robust and appreciated,” he said. “While we disagree with the metrics used to grant recent refinery exemptions, IRFA appreciates the agency’s responsible handling of refinery exemptions granted from 2016 to 2022 and its commitment to prospectively reallocate future exemptions beginning in 2026.”
