Chuck Grassley

07/08/2025 | Press release | Distributed by Public on 07/08/2025 17:43

What They Are Saying: Biodiesel Advocates Applaud Grassley Efforts to Strengthen Iowa’s Renewable Fuels Industry in the One Big Beautiful Bill

07.08.2025

What They Are Saying: Biodiesel Advocates Applaud Grassley Efforts to Strengthen Iowa's Renewable Fuels Industry in the One Big Beautiful Bill

WASHINGTON - Biodiesel producers, farmers and renewable fuel stakeholders say the One Big Beautiful Bill will revitalize and strengthen Iowa's renewable fuels industry and deliver for Iowa farmers.

On July 4, President Trump signed the One Big Beautiful Bill Act into law. It improves and extends the Clean Fuels Production Tax Credit through 2029, including the small agri-biodiesel tax credit - which provides transition relief to small biodiesel producers. After the Biden administration failed to release functional guidance to implement the credit, many small producers, including four in Iowa, shut down operations.

The legislation also protects Iowa farmers by eliminating tax subsidies for renewable fuels produced from imported feedstocks, such as used cooking oil from China or tallow and sugar cane from Brazil. Without this change, the tax code would subsidize foreign farmers at the expense of corn and soybean farmers in Iowa. ?

Here's what they're saying:

Iowa Biodiesel Board/Iowa Soybean Association

"Senator Grassley's leadership on ensuring the incorporation of biomass-based diesel in the One Big Beautiful Bill Act reinforces his decades-long commitment to Iowa agriculture and renewable fuels. In particular, by extending and enhancing the Small Agri-Biodiesel Producer Credit led by the senator, this bill provides much-needed certainty for Iowa's small biodiesel producers-many of which are farmer-owned. That stability directly supports rural jobs, strengthens soybean oil demand and keeps biodiesel production thriving across our state."

Iowa Renewable Fuels Association

"Led by Sen. Chuck Grassley, the final bill includes a restoration of the small biodiesel producer tax credit for 2025 and 2026. We are hopeful this provision, along with the robust RFS blending levels proposed by President Trump's EPA, will be enough to get our biodiesel plants running again."

Clean Fuels Alliance America

"Clean Fuels thanks Congress for working overtime to provide certainty for biodiesel and renewable diesel producers - especially small companies - so they can resume production and industry growth. Clean Fuels especially thanks Sen. Chuck Grassley (R-IA) for securing an enhancement to the Small Agri-Biodiesel Producer Credit to help small producers as they make the transition to the §45Z Clean Fuel Production Credit."

National Oilseed Processors Association

"We applaud Senator Grassley for his tireless efforts to improve 45Z to ensure it is effective for U.S. farmers, oilseed processors, and biofuel producers. This is a meaningful win for Iowa's farmers and the broader ag economy. Coupled with strong RVOs, this new tax policy positions the industry for continued growth by prioritizing feedstocks grown and produced here in the U.S."

American Soybean Association

"ASA is pleased that the 45Z Clean Fuel Production Credit has been extended and strengthened in the budget reconciliation legislation. The improvements to 45Z will provide critical support to U.S. soybean farmers and bolster the biofuel industry by supporting domestic energy production using domestic resources. The addition of the North American feedstock ringfence and removal of indirect land use change penalties on farmers ensure that the credit will support American agriculture rather than foreign countries. We commend the lawmakers who prioritized this important policy and look forward to its successful enactment."

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