{"id":11822,"date":"2025-11-05T02:45:58","date_gmt":"2025-11-05T02:45:58","guid":{"rendered":"https:\/\/midamerica.news\/wright-county-monitor\/?p=11822"},"modified":"2025-11-04T09:02:14","modified_gmt":"2025-11-04T09:02:14","slug":"iowa-ag-accuses-some-small-refineries-of-manipulating-renewable-fuel-exemptions","status":"publish","type":"post","link":"https:\/\/midamerica.news\/wright-county-monitor\/2025\/11\/05\/iowa-ag-accuses-some-small-refineries-of-manipulating-renewable-fuel-exemptions\/","title":{"rendered":"Iowa AG accuses some small refineries of \u2018manipulating\u2019 renewable fuel exemptions"},"content":{"rendered":"
\"\"<\/a>
The Corn LP refinery in Goldfield. (Screenshot, Corn LP, Facebook)<\/figcaption><\/figure>\n

by Cami Koons,<\/em><\/p>\n

Iowa Attorney General Brenna Bird sent a letter to federal regulators Thursday urging an investigation into refineries that receive exemptions for renewable fuel blending standards.<\/p>\n

Bird, who was joined by attorneys general from Nebraska and South Dakota in the letter<\/a>, said some of the small refineries that are eligible for renewable fuel exemptions are \u201cmanipulating\u201d the program and feigning they face \u201cdisproportionate economic harm\u201d while publicly telling investors they are \u201cfinancially thriving.\u201d<\/p>\n

\u201cThe possibility that refineries are gaming the system to receive government handouts when they don\u2019t need them hurts Iowa farmers,\u201d Bird said in a statement. \u201cThey should be investigated by the federal government to ensure that all refiners are following the rules.\u201d<\/p>\n

\n
<\/div>\n<\/div>\n

Each year, the U.S. Environmental Protection Agency sets the Renewable Fuel Standard<\/a> which dictates a volume<\/a> of renewable fuels that must be blended with, or must replace fossil fuels used for transportation, home heating and jet fuel.<\/p>\n

Fuel refiners and importers satisfy these standards by either blending renewable fuels, like ethanol or biodiesel, into their products or by purchasing credits to offset the gas they produce.<\/p>\n

Under the same program, EPA allows refineries that handle less than 75,000 barrels of crude oil input each day to apply for Small Refinery Exemptions<\/a>. If the refinery shows it would experience \u201cdisproportionate economic hardship,\u201d it can be exempted from complying with the Renewable Fuel Standard.<\/p>\n

Bird wrote in the letter that some refineries are \u201cintentionally lowering\u201d their production rates to meet the 75,000 barrel per day minimum and remain eligible for the exemptions.<\/p>\n

\u201cIn other words, certain refineries are producing less gasoline, diesel, and jet fuel to enable them to ask for a government handout,\u201d the attorneys general wrote in the letter. \u201cThat is not only contrary to the spirit of the (Renewable Fuel Standard) and (Small Refinery Exemption) programs, but it is also expressly against President Trump\u2019s clear policy of unleashing American energy.\u201d<\/p>\n

Refineries also, in an action the attorneys general noted was \u201ceven more concerning,\u201d have \u201cmisleading representations\u201d about the disproportionate economic hardships in their businesses.<\/p>\n

The small refineries can request extensions to their exemptions from the EPA with documents that demonstrate the refinery\u2019s economic hardships.<\/p>\n

In August, EPA acted on a \u201cbacklog\u201d of SRE petitions and approved<\/a> 140 full and partial exemptions, while denying 28 petitions.<\/p>\n

A news release on the decision said EPA was \u201cgetting the SRE program back on track with an approach that recognizes some small refineries are impacted more significantly than others and that EPA\u2019s relief should reflect those differences.\u201d<\/p>\n

EPA also said it would provide updated information on how it plans for SREs in the future and said it would \u201cseek to balance\u201d the Renewable Fuel Standard goals to support renewable fuels, while \u201ctaking into account economic impacts.\u201d<\/p>\n

The attorneys general allege some of the refineries that were granted exemptions by EPA had \u201cstrong financial performance and competitive positioning\u201d during the same time they were meant to be suffering \u201cdisproportionate economic hardship.\u201d<\/p>\n

\u201cBoth strong economic results and disproportionate economic hardship cannot coexist,\u201d the letter said, following examples in public filings and quarterly reports where several refineries had positive reports.<\/p>\n

The letter, which was addressed to EPA Administrator Lee Zeldin, U.S. Attorney General Pamela Bondi, U.S. Secretary of Energy Christopher Wright and U.S. Securities and Exchange Commission Chairman Paul Atkins, asks for a \u201ccross-government\u201d confirmation of statements made by refineries seeking the exemptions.<\/p>\n

For the renewable fuel industry, the exemptions mean fewer refineries are required to purchase renewable fuels, or their credits.<\/p>\n

Monte Shaw, executive director of the Iowa Renewable Fuels Association, applauded Bird for leading the letter and efforts to bring the \u201cpotentially illegal situation to light.\u201d<\/p>\n

\u201cIn a time when crop prices are low and increased biofuels usage is a key solution, it is deeply troubling to see what appears to be an attempt by some oil refiners to game the system and avoid their legal requirements under the RFS,\u201d Shaw said in a statement.<\/p>\n

\n
<\/div>\n<\/div>\n

Iowa Capital Dispatch<\/a> is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: info@iowacapitaldispatch.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

by Cami Koons, Iowa Attorney General Brenna Bird sent a letter to federal regulators Thursday urging an investigation into refineries that receive exemptions for renewable fuel blending standards. Bird, who was joined by attorneys general from Nebraska and South Dakota in the letter, said some of the small refineries that<\/p>\n","protected":false},"author":1,"featured_media":11823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[3916,5639,5640,5641,3418,3912,5642,4354,5643,4356,5644,5645,5646,5647,5648,5649,5650],"class_list":["post-11822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ia-news","tag-brennabird","tag-christopher-wright","tag-corn-lp","tag-economic-hardship","tag-epa","tag-iowaattorneygeneral","tag-iowa-farmers","tag-iowa-renewable-fuels-association","tag-lee-zeldin","tag-monte-shaw","tag-pamela-bondi","tag-paul-atkins","tag-renewable-fuel-blending-standards","tag-small-refineries","tag-small-refinery-exceptions","tag-u-s-attorney-general","tag-u-s-environmental-protection-agency",""],"nelio_content":{"autoShareEndMode":"never","automationSources":{"useCustomSentences":false,"customSentences":[]},"efiAlt":"","efiUrl":"","followers":[1],"highlights":[],"isAutoShareEnabled":false,"networkImageIds":[],"permalinkQueryArgs":[],"series":[],"suggestedReferences":[]},"yoast_head":"\nIowa AG accuses some small refineries of \u2018manipulating\u2019 renewable fuel exemptions - The Wright County Monitor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/midamerica.news\/wright-county-monitor\/2025\/11\/05\/iowa-ag-accuses-some-small-refineries-of-manipulating-renewable-fuel-exemptions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iowa AG accuses some small refineries of \u2018manipulating\u2019 renewable fuel exemptions - The Wright County Monitor\" \/>\n<meta property=\"og:description\" content=\"by Cami Koons, Iowa Attorney General Brenna Bird sent a letter to federal regulators Thursday urging an investigation into refineries that receive exemptions for renewable fuel blending standards. 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