In a Q&A, U.S. Senator Chuck Grassley of Iowa underscored the critical role of biofuels in bolstering the farm economy. He highlighted the importance of the Renewable Volume Obligation (RVO) in providing a stable market for corn and soybean farmers.
“Biomass-based fuels convert feedstocks, including corn and soybeans, for use in the nation’s fuel supply,” Grassley said. “Biodiesel and ethanol expand domestic markets for grain farmers, which is particularly vital when there’s uncertainty with overseas trading partners. Iowa farmers and biofuel producers stand ready to meet demand that provides reliable, affordable, cleaner fuel for consumers.”
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Grassley, a long-time advocate for renewable energy, pointed to the Energy Independence and Security Act of 2007 and the Energy Policy Act of 2005, which established the Renewable Fuel Standard (RFS). He emphasized that the RFS, through the RVO, mandates that refiners and importers blend specific volumes of biofuels into the nation’s fuel supply.
“The EPA needs to follow the law as Congress intended,” Grassley stated. “Bureaucratic lollygagging brings uncertainty to the marketplace and unfairness to farmers and biofuel producers who have the capacity to meet demand.”
He also expressed concerns about unfair policies regarding used cooking oil and imported ethanol, urging the Environmental Protection Agency (EPA) to maintain a level playing field for domestic producers.
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Grassley further revealed that he led a bipartisan letter with Senator Amy Klobuchar, pressing the Trump administration to increase RVO levels. They specifically requested the EPA set volume levels for biomass-based diesel at 5.25 billion gallons in 2026 and provide multi-year RVO standards for industry certainty.
“This would send a strong message to boost investment in biofuels that are an important piece of the economic pie in rural communities,” Grassley said. “We’ve seen what happens when RVO levels are low-balled, biofuel facilities are forced to reduce their workforce, idle production or shut down their facilities. That’s a big blow to economic vitality on Main Street and a big market loss for local farmers.”
Additionally, Grassley, who has a strong background in agricultural policy, discussed the importance of federal tax incentives for the biofuel industry. He mentioned his efforts to secure energy tax incentives and address the uncertainty created by the Biden administration’s lack of guidance on the clean fuel production tax credit, known as 45Z.
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“I’m working as hard as ever on behalf of Iowa biofuel producers and family farmers who are putting in the work, taking on the risk and deploying new technologies to power America’s energy needs,” Grassley concluded.
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