Reported RFS exemptions for oil companies could devastate recovering biodiesel industry

The Iowa Biodiesel Board is sounding a warning that reported increases in small-refinery exemptions (SREs) under the Renewable Fuel Standard threaten to unwind months of hiring and investment at biodiesel plants across the state, just as producers ramp up to meet the moment on volumes the federal government asked of them.

According to reports, exemptions for the 2025 compliance year could top 1.8 billion renewable identification number (RIN) credits.

That’s nearly double what the U.S. EPA built into its current blending requirements.

“We stand by our original heartfelt thanks to the Trump administration for the highest renewable volume obligations (RVOs) in history,” said IBB Executive Director Grant Kimberley. “However, if this volume of exemption is truly being considered, I urge the administration to reverse that course. To do otherwise is to set historic blending targets with one hand and erase them with the other. Should these numbers hold, an estimated 500 million gallons of biomass-based diesel demand could disappear, a loss that would be devastating to plants and farms alike.”

Kimberley said biodiesel producers heeded the biofuel commitment from the administration, and they’ve risen to meet it—running plants full-throttle, hiring workers and investing in their communities.

“Pulling the rug out from under them now, after they did exactly what was asked of them, could do irreparable damage that Iowa’s biodiesel and agricultural industries won’t easily recover from,” he said. “I urge the administration to remember that a diversified fuel supply can lessen the exposure American drivers feel due to overseas disruptions. Also, for farmers, this isn’t an abstract policy fight. Biodiesel demand has been one of the few real bright spots in the soybean market, and it’s needed now more than ever. Input costs like fertilizer are already sitting at record highs due to global instability. Losing an estimated $1 billion in biodiesel-driven revenue on top of that could be the difference between a tight year and a genuinely damaging one for farm families.”

At its core, Kimberley said this is a choice about who this administration stands with.

“Hand out exemptions at this scale, and you’re siding with some of the wealthiest oil corporations in the world over small-town manufacturing, rural economies and the Main Street investors who bet on American-made fuel,” he said.