EPA lets Iowa oil refineries skip blending ethanol, other biofuels into fuel

Source: By KETV Omaha • Posted: Thursday, September 3, 2026

DES MOINES, Iowa —

There is growing concern in the local biofuel industry after a new Environmental Protection Agency decision impacted small oil refineries.

The agency is now letting 29 refineries skip blending ethanol and other biofuels into their fuel.

Advocates worry that could reduce demand for Iowa-grown corn, soybeans and the fuels made from them.

They also argue biofuels help keep gas prices lower for drivers.

“If you add 10% ethanol, it drops by 45 to 55 cents. If you add another 5% ethanol, e15, it drops another 15 cents. You can see it with your own eyes,” Monte Shaw, Iowa Renewable Fuel Association, said.

Biofuel leaders are waiting to see whether the EPA follows through.

The agency’s proposal to shift those blending requirements is not expected until late October.

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