EPA proposal brings biofuel discussion to Iowa

October 15, 2026 | Kriss Nelson

A proposal to restore renewable fuel volumes lost to small refinery exemptions could provide greater certainty for Iowa soybean farmers seeking stronger domestic markets.

The Environmental Protection Agency announced Oct. 13 a proposal to fully reallocate renewable fuel volumes lost to 2025 small refinery exemptions under the Renewable Fuel Standard.

The announcement followed an agricultural stakeholder roundtable Oct. 12 in Monticello, where Iowa Soybean Association District 6 Director Joe Sperfslage, a farmer from Coggon, met with EPA Administrator Lee Zeldin and other agricultural stakeholders.

Zeldin indicated during the meeting that EPA intended to restore 100% of the waived volumes.

The proposal is significant for soybean farmers because renewable diesel and biodiesel provide important domestic markets for soybean oil, says Grant Kimberley, ISA senior director of market development. Restoring waived fuel volumes could help preserve demand as farmers navigate tighter margins and market uncertainty.

Farmers at the table

Sperfslage says he appreciated meeting directly with Zeldin to discuss farmers' concerns, including mixed messages from federal agencies about agricultural production and conservation priorities.

“It's great if we can get farmers in front of administrators, especially ones like the EPA and the USDA,” he says. “Great to see them outside of D.C.”

While farmers may not always agree with federal policy decisions, Sperfslage says direct conversations help ensure their perspectives are considered.

“It was nice to sit down with an EPA administrator who seemed to at least be taking the farmer's opinion and experiences into account,” he says.

Looking beyond reallocation

Kimberley says the discussion extended beyond small refinery exemptions to EPA's work on the next Renewable Fuel Standard proposal, often referred to as Set 3.

Zeldin indicated that EPA is considering the half-RIN proposal as part of that work, making domestic feedstock availability an important consideration.

Kimberley says demonstrating sufficient domestic feedstock supplies will be important as the agency develops the next rule.

According to Kimberley, Zeldin also emphasized EPA's willingness to consider agricultural priorities supported by science and within the agency's legal authority.

The discussion highlighted the competing interests EPA must consider within the renewable fuels and petroleum refining sectors.

Market certainty

ISA President Lee Brooke, a soybean farmer from Clarinda, welcomed the proposed reallocation.

“We thank Administrator Zeldin and the Trump administration for signaling their commitment to farmers by proposing to restore 100% of biofuel demand lost to 2025 small refinery exemptions,” Brooke said. The proposal could provide greater certainty and additional domestic soybean demand, he says.

“Iowa farmers are navigating a challenging farm economy while bringing in this year’s crop,” Brooke says. “This proposal offers the potential for greater certainty and much-needed domestic demand for soybeans if finalized later this year.”

Written by Kriss Nelson.

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