Ernst Helps Usher in Certainty for Homegrown Iowa Biofuels

Ernst Helps Usher in Certainty for Homegrown Iowa Biofuels

Celebrates Trump admin's release of 45Z Clean Fuel Production Credit guidance

WASHINGTON - After years of urging the U.S. Department of the Treasury to issue timely guidance on the 45Z Clean Fuel Production Credit, U.S. Senator Joni Ernst (R-Iowa), applauded the Trump administration for advancing much-needed certainty for farmers, biofuel producers, and consumers by unveiling its proposed rule today.

45Z was designed to add value to farmers' crops and increase the domestic production of clean, homegrown biofuels, but requires additional clarification on how farmers and renewable fuel producers can fully participate in the market, guidance the Biden administration consistently failed to provide.

Now, as a result of Ernst's relentless advocacy, the Trump administration is clearing through the final steps to usher in certainty for the biofuel industry, bringing an end to the unpredictably generated by Biden's lack of action, and opening up markets for Iowa crops at home and abroad.

"From releasing guidance on 45Z to backing year-round, nationwide E15, it's clear President Trump is putting rural America, biofuel producers, and farmers first," said Senator Ernst. "After my calls for certainty fell on deaf ears under Biden, thanks to President Trump, we are on track to fully unleash homegrown, American biofuels by giving producers the clarity they deserve. I look forward to continuing to partner with the administration to get year-round E15 across the finish line and ensure our farmers can reap the full benefits of 45Z."

Background:

Ernst helped introduce the Farmer First Fuel Incentives Act, which she successfully included in the Working Families Tax Cuts Act to extend the 45Z Clean Fuel Production Credit to 2029, remove arbitrary environmental penalties against American farmers, and ensure domestic feedstocks are prioritized for biofuel production.

In January 2025, Ernst blasted the Biden administration for late, incomplete guidance on 45Z that left Iowa farmers and biofuel producers with little to no certainty. This delayed guidance came nearly six months after Ernst provided Biden-era officials with a clear timeline and direction for how to create guidelines for the 45Z credit that they ignored.

More broadly, Ernst has been a leading advocate for homegrown, Iowa biofuels, securing access to E15 for the summer driving months, while continuing the call for permanent, nationwide availability that would lower costs at the pump and increase demand for Iowa crops.

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