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Iowa legislature passes bill to create SAF tax credit

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By Erin Voegele

a day ago

Policy 

Iowa state lawmakers in May approved tax legislation that, in part, aims to create a tax credit to incentivize sustainable aviation fuel (SAF) production within the state. The bill is now under consideration by Iowa Gov. Kim Reynolds.

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The Congressional Biofuels Caucus on May 22 launched for the 119th Congress. Caucus members recognize that biofuels are key to American energy independence and advocate for policies that support biofuel producers.

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The U.S. House of Representatives early on May 22 narrowly passed a reconciliation bill that includes provisions updating and extending the 45Z clean fuel production tax credit. The bill, H.R. 1, will now be considered by the U.S. Senate.

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U.S. EPA Administrator Lee Zeldin on May 21 stressed the agency is working “as fast as humanly possible” to finalize a rulemaking setting 2026 RFS RVOs during a hearing held by the U.S. Senate Committee on Environment and Public Works.

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Clean Fuels Alliance America on May 22 delivered a letter to U.S. EPA Administrator Lee Zeldin, urging him to set the 2026 RFS biomass-based diesel volume at no less than 5.25 billion gallons and allow continued growth in the 2027 volumes.

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A group of 28 House members on May 16 sent a letter to President Donald Trump urging his administration to adopt timely, robust Renewable Fuel Standard renewable volume obligations (RVOs) for 2026 and beyond.

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A bill to formally adopt a revenue certainty mechanism to support the production of SAF was introduced in the U.K. Parliament on May 14. The proposed scheme is in the form of a guaranteed strike price.

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Delta Air Lines on May 7 announced its strong support for new bipartisan, bicameral legislation that will accelerate the growth of sustainable aviation fuel (SAF) in Michigan. The bill aims to create a SAF tax credit of up to $2 per gallon.

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The U.S. EPA on May 14 delivered two RFS rulemakings to the White House OMB, beginning the interagency review process. One rule focuses on RFS RVOs and the other focuses on a partial waiver of the 2024 cellulosic RVO.

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U.S. EPA Administrator Lee Zeldin on May 15 told members of the House Appropriations Committee that the agency is working as quickly as it can to take action on the backlog of RFS small refinery exemption (SRE) petitions.

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The House Ways and Means Committee on May 14 advanced its portion of President Trump’s “big, beautiful” tax bill. The draft legislation amends and extends the 45Z clean fuel production credit but repeals several other clean energy tax credits..

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U.S. EPA Administrator Lee Zeldin on May 14 confirmed the agency will “over the next few months” be completing a rulemaking process to set new Renewable Fuel Standard renewable volume obligations (RVOs).

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Reps. Zach Nunn, R-Iowa, and Nikki Budzinski, D-Ill., on May 7 introduced a bill that aims to update USDA’s Section 9003 program to expand access to grants, streamline loan guarantees and provide $100 million in mandatory funding over five years.

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Reps. Mike Carey, R-Ohio, and Mariannette Miller-Meeks, R-Iowa, on May 1 introduced legislation that aims to retroactively extend the biodiesel blenders tax credit (BTC) and the second-generation biofuel producer tax credit.

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A broad coalition representing more than 350 trucking fleets, shippers, and supporters of freight movement is urging Congress to extend the biodiesel blenders’ tax credit to lower supply chain costs and protect consumers from inflationary pressures.

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North Dakota Gov. Kelly Armstrong on April 15 signed a bill creating a low-carbon fuels fund that is designed to help the state’s ethanol producers lower the CI of the fuel they produce, which could help producers participate in the SAF market.

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The Oregon DEQ has confirmed that the 2024 annual report deadline for the state’s Clean Fuels Program will be delayed until May 30 due to a cyberattack the resulted in an extended outage of the Oregon Fuels Reporting System.

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Legislation currently under consideration by the New York legislature aims to establish a clean fuel standard (CFS) that would reduce the greenhouse gas (GHG) intensity from on-road transportation by 20% by 2033.

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On April 23, the Advanced Biofuels Association (ABFA) met with officials in the U.S. EPA to convey the vital importance of domestic biofuel production to the Trump-Vance administration’s energy dominance policy agenda.

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CARB on April 4 released a third set of proposed changes to the state’s LCFS. More than 80 public comments were filed ahead of an April 21 deadline, including those filed by representatives of the ethanol, biobased diesel and biogas industries.

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The Oregon Department of Environmental Quality on April 18 proposed to delay the 2024 annual report deadline for the state’s Clean Fuels Program due to a cyberattack and extended outage of the Oregon Fuels Reporting System.

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The Washington Senate on April 15 voted 25 to 23 in favor of legislation that aims to update the state’s Clean Fuels Standard, setting more ambitious carbon reduction goals that would require a 45% reduction in greenhouse gas (GHG) emissions by 2038.

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In a rapidly evolving energy landscape, the 41st International Fuel Ethanol Workshop & Expo will return June 9–11 to the CHI Health Center in Omaha, Nebraska. The event is recognized as the largest and longest-running ethanol conference in the world.

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The U.S. EPA on April 17 reported that 1.82 billion RINs were generated under the RFS in March, down from 1.93 billion generated during the same month of 2024. Approximately 5.34 billion RINs were generated during the first quarter of 2025.

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CoBank latest quarterly research report highlights current challenges facing the biobased diesel industry. The report cites policy uncertainty and trade disruptions due to tariff disputes as factors impacting biofuel producers.

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The USDA on April 14 announced the cancellation of its Partnerships for Climate-Smart Commodities program. Select projects that meet certain requirements may continue under a new Advancing Markets for Producers initiative.

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The governors of Iowa, Nebraska, South Dakota and Missouri on April 10 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to set higher Renewable Fuel Standard renewable volume obligations (RVOs).

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President Donald Trump on April 8 issued an executive order that aims to protect oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources from state overreach.

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Growth Energy and Clean Fuels Alliance America on April 14 filed a reply brief in a case challenging the U.S. EPA for its failure to reallocate gallons lost due to SREs granted after RVOs have been issued under the Renewable Fuel Standard.

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Sen. Roger Marshall, R-Kan., and Rep. Marcy Kaptur, D-Ohio, on April 10 reintroduced legislation to extend the 45Z clean fuel production credit and limit eligibility for the credit to renewable fuels made from domestically sourced feedstocks.

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