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IRFA Calls for Full Reallocation of Refinery Exemptions at EPA RFS Hearing

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WEST DES MOINES, IA – The Iowa Renewable Fuels Association (IRFA) participated in the Environmental Protection Agency’s (EPA) public hearing on the proposed Renewable Fuels Standard (RFS) blending rule for 2026-2027. As part of that rule, the EPA is evaluating whether to reallocate 100% or 50% of refinery exemptions 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 EPA to finalize its proposal to reallocate 100% of the 2023-2025 refinery exemptions. “The law requires EPA’s prime directive to be ensuring RFS blending levels are met,” said Shaw. “Only full reallocation will maintain the integrity to the RFS and deliver meaningful benefits to rural America.”

Shaw noted that while the delays and backlogs of processing the refinery exemption 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% of the exemptions over 2026-2027. We are concerned by reports that a 50% reallocation scheme is gaining steam. If EPA ultimately determines that 100% reallocation over 2026-2027 is not possible, the agency should not undermine the RFS with 50% reallocation. Instead, as an alternative, the EPA should reallocate 100% of the 2023-2025 exemptions over four years. This approach would have the same market impact in the short term as 50% reallocation but would still provide lasting support for American farmers and the biofuels industry.”

Shaw also commended the EPA for proposing strong RFS blending levels, stating, “The originally proposed blending levels for 2026 and 2027 were robust and appreciated. 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.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.