Hunter
02/04/26
Iowa produced over 30 percent less biofuel in 2025 than the year before, and is the state’s lowest production in a decade.
The Daily Iowan reports Monte Shaw, executive director of the Iowa Renewable Fuels Association, said two federal policies are to blame for the low production levels.
Shaw said the Renewable Fuel Standard program, a rule that requires companies to blend a certain amount of biofuel into gasoline and diesel each year, was set too low by the Environmental Protection Agency under the Biden administration. Additionally, the biodiesel tax credit that pays fuel producers for making cleaner fuel options like biodiesel, has yet to be finalized under the Trump administration.
According to the Iowa Renewable Fuels Association, the state has 10 biodiesel plants. Shaw said two of the plants are not producing any biofuel as they wait for the tax credit to be finalized. If it’s not done by this summer, he predicts plants will go bankrupt.