Grassley Welcomes Trump Administration’s Record-Setting Biofuels Announcement

Grassley Welcomes Trump Administration's Record-Setting Biofuels Announcement

BUTLER COUNTY, IOWA - U.S. Sen. Chuck Grassley (R-Iowa) welcomed the Environmental Protection Agency's (EPA) announcement raising the 2026 and 2027 Renewable Fuel Standard (RFS) volume requirements for biomass-based diesel and advanced biofuels to their highest-ever levels. EPA is also taking action to incentivize domestic feedstocks over foreign imports and ensure only liquid fuels are included, not electricity. EPA estimates the rule will generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors.

"Four biodiesel plants in Iowa closed or idled after the Biden administration set RVOs too low. With today's announcement, President Trump and Administrator Zeldin are bringing relief for Iowa farmers and biofuel producers and for every consumer who wants lower prices at the pump. Biofuels drive economic growth in rural communities and strengthen U.S. energy independence. That's why I'm working so hard to get year-round, nationwide E15 enacted into permanent law," Grassley said.

As part of the announcement, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products starting in 2028. This gives domestic biofuel producers the ability to prepare for the change and benefit over foreign competition. Last year, Grassley led over 45 Senate and House colleagues in a letter urging EPA to finalize this policy.

EPA also announced it is finalizing a 70% partial reallocation of the 2023-2025 exempted RVOs for the 2026 and 2027 compliance years. This follows a push led by Grassley and U.S. Sen. Amy Klobuchar (D-Minn.) urging EPA to reallocate any gallons lost through the granting of small refinery exemptions (SREs). Strong reallocation ensures more RVOs are accounted for.

Background:

Since he helped establish the Renewable Fuel Standard (RFS) in the Energy Policy Act of 2005, Grassley has worked to ensure the executive branch implements the law as intended. Grassley also supported the Energy Independence Security Act of 2007, which included requirements for cellulosic ethanol and set a mandatory RFS requiring fuel producers to use at least 36 billion gallons of biofuel by 2022. Grassley pushed ensuing administrations to keep to this number.

In 2023, Grassley joined the No Fuel Credits for Batteries Act to nullify a proposed Biden-era E-RINS rule that props up the electric vehicle industry while devaluing incentives for ethanol and biodiesel expansion.

Grassley has consistently led bicameral efforts to raise RVOs, including for the 2024-2025 RVOs as well as for 2026 and beyond.

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