Rep. Ashley Hinson, R-Iowa
July 11, 2024
BY Erin Voegele
Reps. Ashley Hinson, R-Iowa, and Angie Craig, D-Minn., and 35 of their colleagues on July 10 sent a letter to U.S. EPA Administrator Michael Regan urging the agency to set 2026 Renewable Fuel Standard blending obligations that accurately reflect growth in biobased-diesel production.
“A strong RFS and availability of homegrown agricultural feedstocks are crucial to meeting the nation’s goal for new advanced biofuels for sustainable aviation (SAF), maritime, rail, home heating, and off-road heavy-duty markets,” the lawmakers wrote. “To meet near-term decarbonization goals, these new markets rely on the RFS to drive growth and increase the availability of advanced biofuels.”
The letter notes that the 2023-2025 RFS renewable volume obligations (RVOs) set by the EPA last year were the highest in history, but stresses “it is increasingly apparent that they should have been set significantly higher across the board to reflect our country’s increased production capacity for biomass-based diesel and advanced biofuels.” The letter cites data released by the U.S. Energy Information Administration last year that indicates that “the RVOs for biomass-based diesel and advanced biofuel were set significantly lower than production trends.” That situation triggered a collapse in renewable identification number (RIN) credit prices that continues to stifle the growth of critical renewable fuels markets today, the lawmakers wrote.
Low RVOs that to not reflect actual production capability is also causing U.S.-based fuel production facilities to close, the lawmakers continued, putting Americans out of work and disrupting local economies.
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“This negative signal to renewable fuel producers threatens billions of dollars of investment in feedstocks and fuel production, including for sustainable aviation fuel,” they explained. America is also missing out on the carbon reduction opportunities delivered by advanced biofuels, according to the lawmakers. While the RFS requires biomass-based diesel and advanced biofuels to achieve a 50% greenhouse gas (GHG) reduction, the lawmakers stress that most biomass-based diesel fuels surpass that threshold, achieving GHG reductions of more than 70% on average.
According to the letter, increased production and availability of renewable fuel not only provides direct benefit to consumers at the pump and at the grocery checkout, it also supports farm sector income.
“We encourage you to send a strong message of support to renewable fuel producers by viewing the current volumes as a jumping off point,” the lawmakers conclude. “We look forward to working with you on 2026 standards that raise the RFS volumes for biomass-based diesel and advanced biofuels to levels that are consistent with production and availability, while ensuring an equivalent increase in total volumes to preserve demand across all categories of biofuels.”
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In addition to Hinson and Craig, the letter is signed by Reps. Nikki Budzinski, D-Ill.; James Baird, R-Ind.; Adrian Smith, R-Neb.; Sharice Davids, D-Kan.; Brad Finstad, R-Minn.; Mark Alford, R-Mo.; Dusty Johnson, R-S.D.; Don Bacon, R-Neb.; Randy Feenstra, R-Iowa; Mike Flood, R-Neb.; Max Miller, R-Ohio; Zach Nunn, R-Iowa; Derrick Van Orden, R-Wisc.; Eric Sorensen, D-Ill.; Mariannette Miller-Meeks, R-Iowa; Mike Bost, R-Ill.; Robin Kelly, D-Ill.; Marcy Kaptur, D-Ohio; Tracey Mann, R-Kan.; Pete Stauber, R-Minn.; David Kustoff, R-Tenn.; Blaine Luetkemeyer, R-Mo.; David Valadao, R-Calif.; Michelle Fischbach, R-Minn.; Darin LaHood, R-Ill.; Ron Estes, R-Kan.; Elissa Slotkin, D-Mich,; Greg Pence, R-Ind.; Sam Graves, R-Mo.; Jake LaTurner, R-Kan.; Andrew Garbarino, R-N.Y.; Emanuel Cleaver, D-Mo.; Rosa DeLauro, D-Conn.; James Comer, R-Ky.; and Daniel Kildee, D-Mich.
Clean Fuels Alliance America applauded the letter. “We appreciate the bipartisan effort to urge EPA to meet statutory deadlines for the Renewable Fuel Standard,” said Kurt Kovarik, vice president of federal affairs at Clean Fuels. “Increased production and market space for advanced biofuels like biodiesel, renewable diesel, and sustainable aviation fuel has always been the goal of the program. EPA needs to act fast to get the program back on track.”
The Iowa Biodiesel Board also welcomed the letter. “We commend Rep. Hinson for her leadership in trying to convince EPA to take a stronger course of action with biodiesel under the RFS,” said Grant Kimberley, executive director of the IBB. “As the letter states, increasing the production, availability and use of advanced biofuels is crucial to meeting America’s decarbonization goals while contributing to economic opportunities in our communities.
“EPA should set the RFS volumes considerably higher to reflect our country’s increased production capacity for clean fuels like biodiesel,” Kimberley continued. “To do otherwise has the effect of restraining growth in the renewable fuels market, a vital part of Iowa’s economy and livelihood of our farmers. One major Iowa biodiesel plant has already shuttered in the last year – we do not want to lose more. We join the legislators in urging EPA to send a strong message of support to renewable fuel producers by looking at the current RFS biodiesel volumes as a launch pad rather than as a ceiling, while preserving demand across all categories of biofuels.”
A full copy of the letter is available on Hinson’s website.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.
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President Trump on July 4 signed the “One Big Beautiful Bill Act.” The legislation extends and updates the 45Z credit and revives a tax credit benefiting small biodiesel producers but repeals several other bioenergy-related tax incentives.
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