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 urged federal regulators to investigate certain small refineries receiving exemptions from renewable fuel blending standards. In a letter sent Thursday, Bird, alongside attorneys general from Nebraska and South Dakota, claimed some refineries misuse the program by pretending to suffer severe economic harm while privately reporting financial success to investors.

“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.”

The exemptions are part of the Renewable Fuel Standard set annually by the U.S. Environmental Protection Agency, which requires a certain volume of renewable fuels to be blended with or replace fossil fuels used in transportation, heating, and aviation.

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Summary

Iowa's Attorney General calls for federal scrutiny of some small refineries allegedly abusing renewable fuel exemptions, affecting farmers and the integrity of environmental programs.

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