Biofuels groups representing both ethanol and biomass-based diesel wrote letters to President Donald Trump — and also took out newspaper ads — ahead of his visit to Clive, Iowa. They are asking the administration to make biofuels policy a priority, expedite rules on the 45Z Clean Fuels Production tax credit and Renewable Fuels Standard Renewable Volume Obligations (RVOs) and support E15 passage that would give certainty to farmers.
Biomass-Based Diesel Production Down With Policy Uncertainty
U.S. biomass-based diesel production was down substantially in 2025, with many plants shuttered or throttling back production due to biofuels policy delays. In Iowa alone, last year’s volume was down about 30%.
That’s at the heart of the letter Clean Fuels Alliance America sent to President Trump, says Kurt Kovarik, vice president of federal affairs.
“The letter was really to tell the president: ‘Use the tools that you have available to you on the RVOs, and also on 45Z as well, to move those regulations along and provide certainty to the industry’,” Kovarik says.
CFAA Asks President Trump for Robust RVOs...Soon
While the fate of the half RIN proposal is uncertain, as part of the RVOs, Clean Fuels wants 100% of the Small Refinery Exemption (SRE) volumes reallocated and adoption of EPA’s proposed 5.61 billion gallon volumes on biomass-based diesel.
Kovarik says: “The proposal that we received from EPA back in the summer is incredibly robust and would send a great signal. So, all we’ve asked the president to do is finalize that volume obligation near what was proposed, and that would go a long way to turning plants on.”
Finalization of the 45Z Clean Fuels Tax Credit Also Needed
In addition, Kovarik says the Office of Management and Budget (OMB) indicates the proposed rules for 45Z are complete. The guidance now goes back to the Treasury, but they’ve also asked for that proposal to be expedited.
“It’s a proposal. So, this will include a notice and comment period for the public before it becomes final,” Kovarik says. “But I think just seeing the proposal for a lot of our producer-members and feed stock providers will go a long way to addressing a lot of the uncertainty that has existed with this credit.”
Kovarik thinks it’s realistic both of these biofuels policies can be completed within the next 60 days, meaning the end of February or early March.
Iowa Groups Take Out Ad Urging the President to Support E15
Farm groups including the Iowa Renewable Fuels Association and the Iowa Corn Growers Association also took out ads prior to President Trump’s visit to ask for help on year-round E15 passage.
Emily Skor, CEO of Growth Energy, says the hope is the President will turn up the heat on Congress to get the legislation over the finish line.
“We all know that what we need right now is an act of Congress,” Skor says. “And so really the conversation has to be: ‘Congress do your job. Okay? We need this.’”
This comes after Congress failed to include an amendment on nationwide year-round E15 in the government spending bills. Speaking on “AgriTalk”, Skor stated the administration and President Trump have been supportive of E15 since he campaigned for the job in Iowa.
“I think the White House wants to see Congress get something done so they can bring a bill to his desk, so he can sign it and we can be done with this once and for all,” she says.
Biofuels policy is critical for corn and soybean farmers as it adds value to homegrown corn and soybeans.
