Ethanol Blog

LINCOLN, Neb. (DTN) -- With the Trump administration having completed its review of proposed rules for the 45Z Clean Fuels Production tax credit ahead of President Donald Trump's visit to Iowa this week, a national biofuels group asked Trump in a letter to release the proposal.

Trump is scheduled to speak during an event in Jan. 27 in Clive, Iowa, where he is expected to talk about energy and the economy.

On Monday, Clean Fuels Alliance America made the case to Trump that biodiesel, renewable diesel and the sustainable aviation fuel industry are important to rural Americans and need federal support.

"Just last week, your administration completed interagency review on proposed rules for the 45Z Clean Fuel Production Credit -- we hope they will be publicized this week," Kurt Kovaric, vice president of federal affairs for Clean Fuels, said in a letter to Trump.

"This credit came into effect in January 2025 without sufficient guidance from the prior administration. Under the One Big Beautiful Bill Act in July last year, Congress made substantial improvements to the credit that also need to be finalized. Again, moving forward quickly to provide reliable guidance would add certainty to the market, driving new demand for fuels and feedstock, adding jobs and economic activity in rural America."

Kovarik said America's soybean and canola farmers, oilseed processors, livestock industry, and biodiesel, renewable diesel and SAF producers need these policies finalized.

"Regulatory delays create intolerable market uncertainty, putting the biodiesel and soybean industry's investments and planned growth at risk," Kovarik told Trump.

"Providing market certainties through 45Z guidance and final RVO's would have a near-immediate impact on fuel production and domestic commodity demand."

Kovarik said the three industries have built more than 6.5 billion gallons of fuel production capacity in the U.S. In 2024, the industries produced more than 5 billion gallons.

"U.S. biodiesel, renewable diesel and SAF production represents 10% of the value of every bushel of soybeans grown in the United States," the letter said.

"In the most recent market year, Iowa produced more than 595 million bushels of soybeans worth nearly $6 billion dollars. However, due to market uncertainty, Iowa's biodiesel production has fallen by a third this year. Producers are already idle or planning to idle. Our progress is threatened by delays in policy decisions that should have been made by the preceding administration. We anticipate that you will quickly finalize these policies and secure your promise as the most pro-biofuel president in history."

Todd Neeley can be reached at todd.neeley@dtn.com

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