Iowa AG Accuses Some Small Refineries of ‘Manipulating’ Renewable Fuel Exemptions

Iowa AG Accuses Small Refineries of Manipulating Renewable Fuel Exemptions

Iowa Attorney General Brenna Bird has called on federal regulators to investigate certain small refineries receiving exemptions from renewable fuel blending standards. The letter, sent Thursday, was supported by the attorneys general of Nebraska and South Dakota.

Bird alleges that some refineries eligible for these exemptions are "manipulating" the program by falsely claiming "disproportionate economic harm" while telling investors they are "financially thriving."

“The possibility that refineries are gaming the system to receive government handouts when they don’t need them hurts Iowa farmers,” Bird said. “They should be investigated by the federal government to ensure that all refiners are following the rules.”

Context of the Renewable Fuel Standard

The U.S. Environmental Protection Agency sets the Renewable Fuel Standard annually. This standard mandates a specific volume of renewable fuels to be blended with or replace fossil fuels used in transportation, home heating, and aviation.

About The Iowa Capital Dispatch

The Iowa Capital Dispatch is an independent news outlet focused on connecting Iowans with their state government and the effects of its policies. It combines comprehensive state government coverage with investigative journalism, political analysis, and opinion.

Author's summary: Iowa’s Attorney General urges a federal probe into small refineries allegedly exploiting renewable fuel exemptions, highlighting concerns for farmers and regulatory integrity.

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