Grassley Echoes Iowa Attorney General Bird’s Call for Answers on Small Refinery Exemptions

Grassley Echoes Iowa Attorney General Bird's Call for Answers on Small Refinery Exemptions

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WASHINGTON - Sen. Chuck Grassley (R-Iowa) sent a letter to Environmental Protection Agency (EPA) Administrator Lee Zeldin echoing concerns raised by Iowa Attorney General Brenna Bird regarding Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS).

In the letter, Grassley is urging the EPA to investigate allegations that small refiners are manipulating the RFS program by falsely claiming economic hardship to the EPA in order to be exempted from blending renewable fuels or buying renewable fuel credits.

Video of Grassley discussing the letter can be found HERE.

"Attorney General Bird's letter raises meaningful questions about Small Refinery Exemptions. Iowa's biofuel producers need timely answers about the health of their industry. For 20 years, the Renewable Fuel Standard has supported biofuels producers, family farmers and rural communities. Its integrity is essential for long-term success. I thank Administrator Zeldin for hearing my concerns for the biofuel industry, and I urge him to fully investigate these allegations," Grassley said.

The full text of the letter can be found HERE or below.

January 14, 2026

The Honorable Lee Zeldin

Administrator

Environmental Protection Agency

1200 Pennsylvania Ave, N.W.

Washington D.C. 20460

Dear Administrator Zeldin,

On October 29, 2025, the Attorneys General of Iowa, Nebraska, and South Dakota wrote to you along with Attorney General Bondi, Secretary Wright, and Chairman Atkins to raise concerns about the Environmental Protection Agency's (EPA) administration of Small Refinery Exemptions (SRE) under the Renewable Fuel Standard (RFS).

While SREs ought to be granted in very rare occasions of extreme hardship which few refineries may ever show, the EPA may grant SREs to refineries that produce no more than 75,000 barrels per day of average crude oil and which show "disproportionate economic hardship" in satisfying required volume obligations. The concerns raised by the Attorneys General included oil refineries artificially idling their plants to satisfy the 75,000 barrels per day requirement and refineries claiming disproportionate economic hardship to the EPA while simultaneously claiming exceptional financial performance to the Securities and Exchange Commission (SEC) and shareholders. Both issues go against the spirit of the RFS and undermine its integrity.

While SREs ought to be granted in very rare occasions of extreme hardship which few refineries may ever show, the EPA may grant SREs to refineries that produce no more than 75,000 barrels per day of average crude oil and which show "disproportionate economic hardship" in satisfying required volume obligations. The concerns raised by the Attorneys General included oil refineries artificially idling their plants to satisfy the 75,000 barrels per day requirement and refineries claiming disproportionate economic hardship to the EPA while simultaneously claiming exceptional financial performance to the Securities and Exchange Commission (SEC) and shareholders. Both issues go against the spirit of the RFS and undermine its integrity.

For 20 years the Renewable Fuel Standard has supported biofuels producers, farmers, and rural communities and its integrity is essential for sustaining that support. Please answer the following questions to reinforce the integrity of the RFS:

1. Have the Attorneys General received a response to their letter from the EPA?
2. Has the EPA or any other federal agency investigated the concerns expressed by the Attorneys General?
3. Will the EPA take the concerns of the Attorneys General into consideration in future rulemaking on the RFS including by cross-referencing filings with other federal agencies such as the SEC?

Thank you for your attention to this matter. I look forward to receiving your timely response.

Sincerely,

Senator Charles E. Grassley

CC:

The Honorable Pamela Bondi, Attorney General of the United States

The Honorable Christopher Wright, Secretary of Energy

The Honorable Paul Atkins, Chairman, Securities and Exchange Commission

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