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Idled biodiesel plants benefit from high RVO levels, ISA says

A farmer-director with the Iowa Soybean Association says the U.S. EPA’s proposed Renewable Volume Obligations for 2026 came at a critical time.

Dave Walton tells Brownfield, “In Iowa we have a number of biodiesel plants that are either shut down, slowed down, or running at far less than their capacity. This should send a signal to the marketplace that they need to get those plants turned on again and start using soybean oil.”

The EPA is proposing total RVO levels of more than 24 billion gallons for 2026, including 5.6 billion gallons of biomass-based diesel. The biodiesel industry had been calling for at least 5.25 billion gallons.

Walton says getting the idled biodiesel plants back on-line will be pivotal for the state’s economy. “Those plants employ about 1600 (people),” he said. “You want to talk about economic impact and keeping our people here and in rural Iowa, there’s a direct link between keeping those biodiesel plants up and running and keeping those rural communities energized.”

Walton says he’s hopeful EPA can finalize its proposed RVO levels before the end of the year.