Reallocation Plan Offers Relief for Ethanol Producers & Farmers

In a big win for Iowa agriculture, the Environmental Protection Agency is stepping in to protect demand for corn growers and biofuel producers across the state.

EPA Administrator Lee Zeldin announced a plan to reallocate more than 770 million renewable fuel blending credits that were previously waived for small oil refineries. The decision came after industry and farm groups criticized record-high refinery exemptions, warning they would hurt local ethanol and biodiesel demand. 

Under the new proposal, the EPA will roll those missing credits into upcoming blending requirements over the 2026 and 2027 compliance years. For Iowa’s renewable fuel sector, the move ensures that hundreds of millions of gallons of ethanol demand are fully restored, safeguarding vital market access for Iowa farmers.