MCGA, MBA urge full reallocation of SRE volumes
To maintain the integrity of the Renewable Fuel Standard (RFS) program, the U.S. Environmental Protection Agency (EPA) must fully reallocate the 2023-25 renewable fuel volumes it waived this summer through small refinery exemptions (SREs).
That was the message the Minnesota Corn Growers Association (MCGA) and Minnesota Bio-Fuels Association (MBA) delivered to the agency in a joint letter last week.
Without a full reallocation, the U.S. could have difficulty meeting the robust renewable fuel targets the EPA has proposed for 2026 and 2027, MCGA and MBA said. Those targets are important to securing U.S. energy independence and reducing costs for drivers at the pump while bolstering farm families and rural economies. A partial reallocation of the exempted volumes would also undermine the integrity of the RFS, which for 20 years has been a resounding policy success.
MCGA and MBA also urged the EPA to be extremely judicious in its granting of SREs and avoid them in almost all cases. They noted that SREs were never meant to be issued on a permanent, ongoing basis or as a way for refineries to avoid their obligations under the RFS.
The comment letter from MCGA and MBA came two days after the attorneys general of Iowa, Nebraska, and South Dakota wrote a letter urging federal authorities to investigate small refiners that may be manipulating the RFS program. In a news release, Iowa Attorney General Brenna Bird noted that some big companies that own multiple small refineries that have received exemptions are making public statements that conflict with exemption requirements.
“The possibility that refineries are gaming the system to receive government handouts when they don’t need them hurts Iowa farmers,” Bird said in a statement. “They should be investigated by the federal government to ensure that all refiners are following the rules.”
MCGA will continue to follow EPA’s rulemaking around SREs and the 2026-27 renewable volume obligation proposal. You can continue to follow MCGA’s efforts to maintain the integrity of the RFS on our website or by subscribing to our weekly e-newsletter, Leader Update.
