IRFA Opposes Efforts by Oil State Governors to Undermine Renewable Fuel Standard

Weaking the RFS would increase fuel prices while hurting Iowa farmers

Press Contact:

Emily Freese

515-322-0435

WEST DES MOINES, IA - The Iowa Renewable Fuels Association (IRFA) strongly opposes the request by Govs. Jeff Landry (LA) and Kay Ivey (AL) to waive the Renewable Fuel Standard (RFS) blending levels for 2027. Blaming the RFS for high fuel prices is misguided and ignores the important role renewable fuels play in expanding U.S. fuel supplies, strengthening energy security and providing consumers with more affordable choices at the pump. Weakening the RFS would undermine American farmers, renewable fuel producers, and rural economies, and lead to higher prices.

"With all due respect to the governors, during this time of high fuel prices, the last thing you want to do is reduce supply," said IRFA Executive Director Monte Shaw. "The real solution is to unleash additional U.S. supply, which Congress can do by removing barriers to year-round E15 sales. Ethanol lowers fuels prices because it is less expensive than gasoline and adds gallons to the market. Expanding the use of low-cost ethanol, made right here in America, would lower prices at the pump. Consumers need real solutions, not ineffective political potshots."

Over 14 billion gallons of ethanol expand U.S. fuel supplies each year. Currently ethanol sells for more than a dollar less than straight gasoline on the wholesale market. In order to grant an RFS waiver, requesting governors must prove either that implementation of RFS requirements are severely harming their local region's economy or that there is inadequate domestic supply.

"It is absurd to claim that implementing the RFS in 2027 is causing severe economic harm - the year hasn't even started yet," stated Shaw. "Just look at the price of gasoline without ethanol - it's way more expensive. Further, renewable fuels production is expanding, not contracting. Renewable fuels do not rely on imported feedstocks or the Strait of Hormuz. President Trump knows we need more, not less, domestic fuel supply. That's why he set robust RFS blending levels for 2026-2027 in the first place. Now would be the worst time to reverse course. IRFA urges President Trump to swiftly reject this misguided petition and ensure certainty for the marketplace."

Since the 2026-2027 RFS levels were announced earlier this year, Iowa renewable fuels plants have expanded production, restarted idled plants, and increased employment in rural communities.

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The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 42 ethanol refineries capable of producing over 5 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 8 biodiesel facilities with the capacity to produce 408 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org .