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Iowa’s attorney general sent a letter to federal authorities this week alleging that some refiners may have abused the exemption process for renewable fuel blending standards.
In the letter, Attorney General Brenna Bird said several refiners who had petitioned for exemptions, claiming compliance with the standards would cause “disproportionate economic harm,” had “communicated the exact opposite to the investment community and to the SEC—that they were not only not disproportionately harmed, but that they were economically thriving, outperforming and out positioning their peers.”
The letter was addressed to U.S. Attorney General Pam Bondi, Securities and Exchange Commission Chairman Paul Atkins, Energy Secretary Christopher Wright and EPA Administrator Lee Zeldin. The letter was co-signed by Nebraska Attorney General Mike Hilgers and South Dakota Attorney General Marty Jackley.
Bird also charged that several refineries had reduced production capacity below the 75,000 barrel-a-day eligibility threshold for small-refinery exemptions, or SREs.
“That requirement should not be subject to manipulation, and if a refinery has capacity beyond that cap, it should be ineligible for SRE consideration absent extenuating circumstances beyond the refiner’s control,” Bird wrote. Such maneuvers mean that “certain refineries are producing less gasoline, diesel, and jet fuel to enable them to ask for a government handout.”
Bird urged authorities to “confirm cross-government that if any false and misleading statements were made that they are investigated and that any improper benefit therein described is ended.”
Notable closes
Soybean meal extended its winning streak to 14 sessions Friday as markets shrugged off earlier profit-taking to bring the month to a positive close. While excitement over China’s renewed purchases helped push January soybeans to a 13-month high, meal has been on fire since mid-month, though the sharp gains have left it significantly overbought from a technical perspective.