Protecting Domestic Demand: ISA Responds to EPA Refinery Waivers and RIN Reallocation

Biodiesel tanks (Photo: Iowa Soybean Association / Joclyn Kuboushek)

Ankeny, Iowa - Iowa Soybean Association President Tom Adam offers the following statement on today's announcement regarding Small Refinery Exemptions and supplemental rulemaking to reallocate record Renewable Identification Numbers.

"The Iowa Soybean Association welcomes EPA's notice of supplemental rulemaking and their proposal to reallocate all Renewable Identification Numbers associated with newly expanded small refinery exemptions. Complete reallocation of all lost RINs from these newly exempt volumes is the only acceptable solution. Let us be clear, these new waivers will not lower gas prices, and any deviation from EPA's proposal to completely reallocate is destruction of domestic markets critical to the bottom line of Iowa soybean farmers.

"Protecting domestic demand for soybeans is essential to Iowa farmers and the future of our industry. We appreciate the USDA and the Iowa congressional delegation for their steadfast advocacy on behalf of farmers. EPA must now immediately get to work to ensure their proposal to reallocate 100% of lost volumes is realized.

"ISA joins the American Soybean Association in urging EPA to move forward with supplemental rulemaking and ensure any additional small refinery exemptions for 2025-2027 are fully accounted for in renewable fuel obligations. Any attempt to delay reallocation until 2028 or reallocate less than 100 percent of the lost volumes can only be viewed as a broken promise to farmers. Maintaining a strong Renewable Fuel Standard is critical to protecting domestic markets Iowa farmers depend upon.

"Today's action by the administration makes it even more urgent that the Senate pass the farm bill, including the E15 provision. Doing so will eliminate future administrations' ability to use this small refinery mechanism to pull the rug out from underneath farmers and the biofuel industry."

Biomass-based diesel represents a critical market for Iowa-grown soybeans, supporting soybean prices, farm income and economic vitality in our rural communities. Iowa is the nation's leading producer of biodiesel and soybean oil. Iowa processes approximately 85% of our soybean crop locally into meal and oil, with most of the soybean oil used in the production of biomass-based diesel.

To learn more, visit iasoybeans.com.

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Not funded by the soybean checkoff.