Looks forward to working with Trump administration to provide certainty.
WASHINGTON – U.S. Senator Joni Ernst, a member of the Senate Agriculture Committee, today blasted the Biden administration for failing to provide meaningful guidance on the 45Z Clean Fuel Production Credit, continuing to leave Iowa’s farmers and biofuel producers with little to no certainty.
Earlier this year, Ernst led the call demanding President Biden’s U.S. Department of Treasury publish 45Z guidance in a timely manner with the American producer at the forefront. While 45Z went into effect on January 1, 2025, it continues to remain non-operational and the Biden administration’s failure to meet important deadlines has forced biofuel producers to idle or completely stall production—threatening numerous jobs in the process.
“After dragging its feet, the Biden administration has once again let our biofuel producers down on its way out the door,” Ernst said. “By ignoring my demands to meet necessary deadlines, Biden’s Treasury Department has shown again its misplaced priorities. Instead of supporting our clean, homegrown biofuels, it has shamelessly promoted radical, out-of-touch Green New Deal priorities. I look forward to working with the incoming Trump administration to right this wrong and ensure certainty for our Iowa farmers and producers.”
After today’s announcement, an updated Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model also remains unclear. Ernst has called for this model to qualify as an eligible methodology when calculating 45Z credits and properly incorporate on-farm practices that Iowa farmers can implement in the field. Without explicit guidelines in this area, farmers remain in the dark and are largely unable to supply the necessary grain to fuel this new market.
Background:
Throughout her time in Congress, Ernst has also been a strong advocate for homegrown, Iowa biofuels, including by calling on the Biden White House to make E15 available year-round and country-wide, adhere to the GREET model to provide domestic producers with a seat at the table, amend its harmful decision to set the Renewable Volume Obligation (RVO) levels well below industry production capacity, and raise Renewable Fuel Standard volumes for biomass-based diesel and advanced biofuels.
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