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Capitol Notebook: Iowa AG urges federal probe into refinery exemptions under renewable fuels program
Also, Iowa seniors urged to review coverage as insurers drop Medicare Advantage plans and new drug price changes take effect for 2026
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Iowa Attorney General Brenna Bird has asked the U.S. Department of Justice and other federal agencies to investigate whether some oil companies are improperly benefiting from exemptions under the Renewable Fuel Standard program meant for small refiners facing economic hardship.
In a letter sent Wednesday to the Justice Department, Department of Energy, Environmental Protection Agency, and Securities and Exchange Commission, Bird said some refineries may be “gaming the system” to receive small refinery exemptions while simultaneously reporting strong profits to investors.
The RFS requires refiners to blend renewable fuels such as ethanol into their products or buy compliance credits. Bird said some companies appear to have manipulated production to remain under the 75,000-barrel-per-day cap that qualifies them for exemptions, and have made public filings touting record profits and stock buybacks — claims she said are inconsistent with assertions of financial hardship.
“Renewable fuels are part of the backbone of Iowa’s economy,” Bird said in a statement. “The possibility that refineries are gaming the system to receive government handouts when they don’t need them hurts Iowa farmers.”
Bird, in the letter, said the RFS program “plays a critical role in setting the demand for renewable liquid fuels and the agricultural feedstocks necessary for such fuels — both of which are critical to the economic prosperity of Iowa and surrounding States.”
Attorneys general from Nebraska and South Dakota joined Bird in signing the letter, which calls on federal officials to “restore integrity” to the renewable fuels program.
The Iowa Renewable Fuels Association applauded Bird.
“In a time when crop prices are low and increased biofuels usage is a key solution, it is deeply troubling to see what appears to be an attempt by some oil refiners to game the system and avoid their legal requirements under the RFS,” Executive Director Monte Shaw said in a statement.
Iowa Biodiesel Board warns of losses, urges quick EPA action
Meanwhile, the Iowa Biodiesel Board submitted formal comments to the EPA urging the agency to swiftly finalize the 2026-2027 Renewable Fuel Standard rule and to fully reallocate nearly 200 small refinery exemptions. The group warned that failure to act could cost U.S. soybean farmers $3.2 billion to $7.5 billion in crop value over the next two years, citing data from the World Agricultural and Economic Environmental Services model.
“U.S. biomass-based diesel adds value to every acre of soybeans grown, accounting for roughly ten percent of each bushel’s worth — a contribution that is especially vital this year as America’s soybean farmers face record yields amid unpredictable global markets,” Iowa Biodiesel Board Executive Director Grant Kimberley said in a statement.
The board said independent biodiesel producers in Iowa, lacking the financial reserves of larger competitors, are particularly vulnerable to prolonged regulatory uncertainty.
The board is calling on the EPA to:
- Reallocate 100 percent of small refinery exemptions for 2023 through 2027
- Finalize Renewable Volume Obligations before the new compliance year begins
- Maintain strong volume targets to ensure market certainty for farmers and producers.
Kimberley said the industry appreciates the EPA’s recognition of expanded production capacity but stressed that timely rulemaking is critical as Iowa farmers already are making planting decisions for the next season.
Iowa’s biodiesel industry supports 12,000 jobs and generates roughly $3.5 billion in economic activity. In 2024, the state’s 10 biodiesel plants produced an estimated 350 million gallons, making Iowa the nation’s top biodiesel-producing state.
Feenstra backs strong biofuel volumes and reallocation
Also, Iowa U.S. Rep. Randy Feenstra, R-Hull, led a bipartisan letter — signed by 49 members of Congress — to EPA Administrator Lee Zeldin expressing strong support for the agency’s proposed Renewable Volume Obligations under the RFS. The lawmakers urged the EPA to reallocate 100 percent of waived gallons from any granted small refinery exemptions and to finalize the rule as quickly as possible.
“A final, timely … rule that includes strong RVOs and necessary reallocation represents the most meaningful commitment to farmers and rural communities, homegrown American energy, and affordability for consumers,” Feenstra said in a statement.
Feenstra, who earlier this week formally announced he is running for Iowa governor in 2026, was joined in the effort by the rest of Iowa’s all-Republican congressional delegation.
In September, the EPA issued a supplemental proposal considering proposed levels of reallocation for small refinery exemptions — a key issue for Midwestern lawmakers and biofuel producers seeking market stability and fairness in implementation of the RFS.
Medicare changes ahead as open enrollment begins
With the Medicare open enrollment period underway through Dec. 7, thousands of Iowans are reviewing their options amid significant changes.
According to the Iowa Insurance Division’s Senior Health Insurance Information Program, major adjustments in plan offerings, drug coverage and provider networks are expected in 2026 after new federal drug pricing reforms and the 2025 cap on prescription co-payments.
The federal health insurance program provides coverage for people 65 or older, as well as younger people with certain disabilities or health conditions.
Among the biggest changes this year:
- Plan cancellations: UnitedHealthcare is canceling eight of its 10 AARP Medicare Advantage plans in Iowa, affecting about 36,500 enrollees. Wellmark is ending three of four plans with drug coverage. Beneficiaries in canceled plans must select a new plan by Jan. 1 to avoid losing coverage.
- Reduced service areas: 22 other Medicare Advantage plans have shrunk their geographic coverage, meaning some Iowans’ plans may no longer be available in their county.
- Provider network changes: Several large health systems have adjusted which Medicare Advantage plans they accept, making it critical for members to confirm their providers remain in-network.
- Lower drug costs: Negotiated price reductions are taking effect for 10 high-cost drugs — Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and Novolog/Fiasp — though costs will vary by plan.
Kristin Griffith, SHIIP and Senior Medicare Patrol director, urged Iowans to act quickly if their plan is ending or no longer offered in their area. Beneficiaries in those situations have guaranteed issue rights, allowing them to switch to another Medicare Advantage plan or return to Original Medicare and buy a Medicare supplement without medical underwriting or higher premiums — but only until Feb. 28.
“It is time individuals on Medicare to read all mail from their plan or provider and stay informed of possible changes,” the Iowa Insurance Division said in a news release.
If a Medicare beneficiary receives notice that their plan has been canceled or is no longer offered in their ZIP code, “that letter is the proof required to secure the guaranteed issue right to enroll in a Medicare Supplement,” according to the Insurance Division.
Last year, SHIIP-SMP helped more than 52,000 Iowans and saved clients tens of millions of dollars, according to the Insurance Division. Appointments are available statewide but are filling quickly.
Beneficiaries can compare 2026 plans online at Medicare.gov/plan-compare or call 1-800-MEDICARE (1-800-633-4227) for 24/7 assistance. For local help, contact SHIIP-SMP at 1-800-351-4664 or visit shiip.iowa.gov for resources, FAQs and counselor locations.
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