WASHINGTON – Sens. Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.) are leading a bipartisan group of 16 senators in 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. The Biden-era EPA set RVOs at levels that fail to align with market conditions and production outlook, which has contributed to biodiesel plant closures in the Midwest. Grassley is a lifelong family farmer and a member of the Senate Agriculture Committee. Klobuchar serves as the Agriculture Committee’s Ranking Member.

In a letter to EPA Administrator Lee Zeldin, the senators pressed EPA to implement multi-year RVO standards to provide certainty and growth for the biofuels industry. 

“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 RFS is the federal government’s best tool to support biofuels, and 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,” the senators concluded. 

The letter was also signed by Sens. Joni Ernst (R-Iowa), Tammy Baldwin (D-Wis.), Tammy Duckworth (D-Ill.), Richard Durbin (D-Ill.), Deb Fischer (R-Neb.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Gary Peters (R-Mich.), Pete Ricketts (R-Neb.), Jeanne Shaheen (D-N.H.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Mike Rounds (R-S.D.) and Josh Hawley (R-Mo.).

“At a time of low farm commodity prices and unsettled trade conditions, President Trump has called on farmers to sell more products at home. The two best ways to make that a reality are to approve nationwide, year-round E15 and to set market-moving Renewable Fuel Standard blending levels. IRFA members applaud Senator Grassley and his colleagues for keeping robust RFS implementation at the forefront of the Trump EPA agenda,” Iowa Renewable Fuels Association Executive Director Monte Shaw said of the bipartisan letter. 

Background:

Since he helped establish the RFS in the Energy Policy Act of 2005, Grassley has worked to ensure the executive branch implements the law as intended. Grassley also supported the Energy Independence Security Act of 2007, which included requirements for cellulosic ethanol and set a mandatory RFS requiring fuel producers to use at least 36 billion gallons of biofuel in 2022. Grassley pushed ensuing administrations to keep to this number. This latest letter targeting 2026 RVOs and beyond comes on the heels of a Grassley-backed bicameral push to raise 2024-25 RVOs. 

Text of the letter to Administrator Zeldin follows: 

The Honorable Lee Zeldin Administrator  

U.S. Environmental Protection Agency  

1200 Pennsylvania Avenue NW Washington, D.C. 20460 

Dear Administrator Zeldin, 

We appreciate your commitment to American energy production. Biofuels play a critical role in domestic energy security, keeping consumer costs low, creating markets for America’s farmers, and supporting rural America. The Renewable Fuels Standard (RFS) is the best tool the federal government has to support biofuels. Therefore, we encourage the Environmental Protection Agency (EPA) consider the following as it determines Renewable Volume Obligation (RVO) levels for 2026 and beyond. 

As the Trump administration pursues policies to increase liquid fuel production and as biofuel production capacity consistently increases, RVO levels should also increase to reflect these changes. 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. We ask that the EPA raise 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. 

Additionally, as you consider policies that reduce consumer costs, biofuels provide a buffer to market fluctuations in the liquid fuel market, consistently costing consumers less than traditional liquid fuels. We ask the EPA to provide multi-year RVO standards to provide certainty and growth for the biofuels industry. Long term industry stability helps drive continued investments in biofuels which in turn helps keep consumer costs low. 

We have seen the cost to rural communities when RVO levels 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. That is at risk if RVO standards are set too low. 

Additionally, should EPA grant any small refinery exemptions, the gallons that would have been obligated to those refiners should be added back into the total number of required gallons, as intended by the structure of the RFS, so that the full volume of the RVOs is accounted for and the overall RVOs are not effectively reduced after the rule is finalized. 

Thank you for your swift consideration of this request to continue to pursue policies that expand American energy production. 

-30-