Jackley Joins Iowa and Nebraska AGs Demanding Federal Probe into Refiner Renewable Fuel Standard Compliance

Steve Jurrens
Nov 11
2 min read

Northeast Radio SD News – South Dakota - South Dakota Attorney General Marty Jackley has formally joined the Attorneys General of Iowa and Nebraska in calling for a federal investigation into large oil refiners suspected of skirting compliance with the Renewable Fuel Standard (RFS) program.

The Attorneys General sent a letter, dated October 29, 2025, to four federal agencies: the U.S. Department of Justice, the Department of Energy (DOE), the Environmental Protection Agency (EPA), and the Securities and Exchange Commission (SEC).

Allegations of Inconsistent Reporting and "Gamesmanship"

The RFS program requires larger refiners to produce a quota of ethanol-blended fuels to promote American energy independence, which aligns with President Trump's national energy policy. Refineries facing economic hardship can apply to the DOE and EPA for a Small Refinery Exemption (SRE).

The Attorneys General argue that the integrity of the RFS is being compromised by two forms of potential "gamesmanship" by certain refiners:

· Manipulating Production for Eligibility: To qualify for an SRE, a refinery must produce no more than 75,000 barrels per day of average crude oil and show "disproportionate economic hardship." The letter notes that some refineries are intentionally reducing their output to stay under the 75,000-barrel cap, specifically to maintain SRE eligibility, which is contrary to the spirit of the RFS and President Trump’s policy of "unleashing American energy."

· Contradictory Financial Reporting: The most significant concern is the inconsistency between claims of "disproportionate economic harm" made to environmental regulators (EPA) and strong financial performance reported to investors and the SEC. The Attorneys General state that "Both strong economic results and disproportionate economic hardship cannot coexist," and that refiners cannot both "outperform and outmaneuver their peers yet also be disproportionately economically harmed."

Evidence of Financial Health

The letter provides examples of SRE-receiving refiners communicating strong financial performance to investors, including:

· Highlighting low-cost operations and competitiveness.

· Leading peers in capital return to investors and aggressively buying back shares.

· Acquiring new refineries and/or investing in renewable fuel facilities.

· Fully retiring any historical RIN obligations and issuing special dividends.

· Some companies even stated that future grants of SREs would be a "welcome windfall."

Demand for Investigation

The letter asks federal agencies to share information to investigate whether any false or misleading statements were made and to ensure that any improper benefits are ended, thereby aiding in "restoring integrity to the RFS and SRE programs."

Attorney General Jackley emphasized the local economic impact, stating: "Renewable fuels are important to South Dakota’s economy, especially rural communities; but if refineries are not following the rules, they hurt our state’s farmers and ethanol industry." He added that skirting RFS requirements "thwarts the President’s national energy policy. The federal government needs to ensure that the RFS’s integrity is maintained."