Letter urges action to grow biofuel demand and market certainty
November 6, 2025 | Brock Johnston
Amid ongoing market uncertainty and a government shutdown, the Iowa Soybean Association has submitted official comments to the U.S. Environmental Protection Agency (EPA) regarding the agency’s supplemental proposed rule on small refinery exemptions (SRE) petitions for 2023-2025.
In a letter to EPA Administrator Zeldin, ISA President Tom Adam urged the agency to fully reallocate the volumes exempted under these SREs in the Renewable Fuel Standard (RFS) obligations for 2026-2027. The move, Adam says, is essential to maintaining demand for biodiesel and supporting rural economies.
“Without strong support for the market, Iowa farmers and rural communities risk losing a vital source of income and stability,” says Adam. “A weakened biodiesel industry would reduce local demand for soybeans and shift economic opportunities away from rural Iowa.”
ISA’s comments emphasize that the EPA’s proposed renewable fuel obligations (RVOs) for 2026 and 2027 are critical to sustaining Iowa’s biofuel industry and farm economy. Iowa is the nation’s leading biodiesel producing and soybean processing state. In 2024 alone, two billion pounds of soybean oil were used to produce biodiesel in Iowa, equivalent to oil derived from about 178 million bushels of soybeans, or more than 30% of the state’s total crop.
Adam noted that by finalizing the 2026-2027 RVOs with full SRE allocation, the agency would help ensure continued growth in the state’s biofuel and soybean sectors.
“Without 100% reallocation, the resulting RIN demand destruction will limit biofuel value chain expansion and diminish potential domestic market growth for U.S. soybeans,” says Adam. “ISA asks to protect the proposed RVO volumes through full reallocation and urges the swift finalization of 2026-2027 RVOs.”
Read the full letter here.
Written by Brock Johnston
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