Iowa Biofuels Producer Receives Federal Grant… And Lawsuit?

An Iowa biofuel producer is in an interesting situation.

In an article from Iowa Capital Dispatch, Quad County Corn Processors Cooperative is in a position where it can collect millions in federal assistance as well as being sued by the federal government.

Ten biofuel producers in Iowa were announced as being part of a $70.8 million grant program. The program was set up to help those producers that experienced market losses due to the pandemic.

Ida County’s Quad County Corn Processors Cooperative is one of the ten recipients of federal grants. It is set to collect $3,991,563.

Then, last week, according to Iowa Capital Dispatch, another branch of the federal government, the EPA, sued Quad County Corn for up to $21.7 million, alleging they were in violation of the federal Clean Air Act.

According to the court documents, the EPA is alleging that Quad County Corn produced renewable fuels from a process that was not described in its registration. From May 26, 2015, through Oct. 12, 2015, “Quad County allegedly produced renewable fuel using equipment that introduced starch into the production process”.

Iowa Capital Dispatch goes on to say that the EPA also alleges that Quad County Corn also failed to submit chemical analysis and data and created invalid Renewable Identification Numbers, or RINs.

On top of the penalties, the EPA is also saying that Quad County Corn is liable for any economic benefits/ savings that were generated by the violations in the suit. However, these were not listed on the court petition.