Iowa AG Accuses Small Refineries of Manipulating Renewable Fuel Exemptions
Iowa Attorney General Brenna Bird has called for a federal investigation into small refineries that receive renewable fuel exemptions. In a letter sent Thursday, Bird and the attorneys general of Nebraska and South Dakota asked regulators to scrutinize claims made by these refineries under the Renewable Fuel Standard program.
“Some of the small refineries that are eligible for renewable fuel exemptions are manipulating the program and pretending to face disproportionate economic harm, while publicly telling investors they are financially thriving,” said Bird.
Bird argued that such behavior undermines Iowa’s farmers and distorts fair competition. She urged federal officials to ensure that all refiners comply with established guidelines.
“The possibility that refineries are gaming the system to receive government handouts when they don’t need them hurts Iowa farmers,” Bird stated. “They should be investigated by the federal government to ensure that all refiners are following the rules.”
Under the Renewable Fuel Standard, the U.S. Environmental Protection Agency determines yearly how much renewable fuel must replace or be blended with traditional fossil fuels for purposes such as transportation, home heating, and jet fuel.
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Author’s Summary
Attorney General Brenna Bird, supported by neighboring states, is urging federal regulators to probe alleged misuse of renewable fuel exemptions by small refineries claiming false economic distress.