Ernst Pushes to Restore RFS Integrity, Promote Stable Growth for Homegrown Iowa Biofuels

WASHINGTON – U.S. Senator Joni Ernst (R-Iowa), a member of the Senate Agriculture Committee, is urging the Environmental Protection Agency (EPA) to restore integrity, stability, and growth to the Renewable Fuel Standard (RFS) and the U.S. biofuel sector by raising Renewable Volume Obligation (RVO) levels for biomass-based diesel and advanced biofuels. In a letter to EPA Administrator Lee Zeldin, Ernst and her colleagues pressed the EPA to implement multi-year RVO standards to provide certainty and growth for the biofuels industry, and in the event that the EPA does grant any small refinery exemptions, the group also asks that the gallons obligated to those refiners be reallocated to the overall RVO.

“The biofuels market continues to expand to new frontiers including marine shipping, aviation and rail. These markets are driven in part by demand for low carbon fuels that biofuels can uniquely provide … biofuels provide a buffer to market fluctuations in the liquid fuel market, consistently costing consumers less than traditional liquid fuels,” the senators wrote. 

The senators cautioned about the risks to rural America if RVO standards are set too low. 

“Over the last three years, multiple biodiesel plants have shuttered or idled due to RVOs being set significantly below what industry requested and production capacity. Biofuels are a large economic driver for rural America as farmers’ crops are used for feedstocks and many production facilities are located in small communities,” the senators continued. “By taking the above actions, the EPA can quickly restore integrity, stability and growth to the RFS and the U.S. biofuel sector while ensuring that the program continues to reduce greenhouse gas emissions, diversify our fuels, drive down gas prices, strengthen our national security and drive rural economic opportunity.”

Read the full letter here.

Background:

Despite recommendations from Ernst, the Biden-era EPA finalized RVO levels that failed to accurately reflect market conditions and future production capacity. As a result, multiple biomass-based diesel plants have now permanently closed or temporary stalled, including one in Ralston, Iowa. Following the plant’s closure, Ernst pushed the administration to increase RVO levels for homegrown Iowa biofuels. Recently, Ernst also backed legislation to include ocean-going vessels, such as cargo ships and tankers, under the RFS, opening up a new market for Iowa’s biofuel producers.

More broadly, Ernst has been a leading advocate for homegrown, Iowa biofuels, securing access to E15 for the summer driving months, while continuing the call for permanent, nationwide availability that would give those in the biofuel industry the certainty they deserve. She was instrumental in creating and maintaining the Higher Blends Infrastructure Incentive Program as part of her commitment to invest in renewable fuel infrastructure, rural job opportunities, and hardworking farmers.Ernst also looks forward to working with the Trump administration to correct the incomplete and delayed Biden-era guidance on 45Z that has left biofuel producers and rural America in ongoing uncertainty.

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