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.
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