Statewide Iowa (RI) — Iowa Renewable Fuels Association Executive Director Monte Shaw says the state’s biodiesel producers are facing dire circumstances.
He says many biodiesel plants idled in 2025 and haven’t restarted.
The biodiesel industry is waiting for guidance on federal tax credits for low-carbon fuels that could be worth up to one dollar per gallon. It’s called the Section 45-Z Clean Fuel Production Credit.
Shaw also cites the delay in the Environmental Protection Agency’s release of mandated biofuel blending levels for 2026.
A national trade association for producers of biodiesel and sustainable aviation fuels is also urging the EPA to act.
The Clean Fuels Alliance says the delay in releasing the 2026 Renewable Fuels Standard obligations has created intolerable uncertainty for biodiesel producers and soybean processors who are negotiating contracts and making investment decisions for 2026. The group also warns it’s impacting how many acres farmers may plant with soybeans this spring.
KIWA Staff Photo
