Capitol Notebook: EPA proposes higher biofuel blending volumes

State officials and Iowa’s biofuels industry praised proposed Renewable Fuel Standard volumes for 2026 and 2027 released Friday by the Trump administration, calling the record-setting targets for biomass-based diesel a major win for domestic biodiesel producers.

The U.S. Environmental Protection Agency Friday released its Renewable Fuel Standards draft rule, which proposes a total 24.02 billion gallon level in 2026.

The RFS mandates that U.S. refiners blend a certain amount of renewable fuels into transportation fuels, or buy credits to comply.

The draft rules propose biomass-based diesel standards equivalent to 5.61 billion gallons in 2026 and 5.86 billion gallons in 2027. That’s a significant jump from the EPA’s 2025 targets, which set an annual volume requirement of 3.35 billion gallons for biomass-based diesel.

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Grant Kimberley, executive director of the Iowa Biodiesel Board, said in a statement the volumes “signal real opportunity for domestic producers, especially here in Iowa, and we appreciate the EPA’s recognition of what this industry is capable of delivering.”

“We thank the Trump administration for recognizing that American-made biofuels should be a national priority, and for setting the stage for today’s historic growth in biomass-based diesel,” Kimberley added. “For Iowa, these volumes likely mean something even more immediate — getting our idled biodiesel plants back up and running. That’s good news for jobs, for soybean farmers and for communities that rely on biofuels as a driver of economic growth.”

Iowa Republican U.S. Reps. Ashley Hinson and Randy Feenstra and U.S. Sen. Joni Ernst celebrated the EPA announcement.

“I'm very encouraged by the EPA's proposed rule, which underscores the important role that biofuels play in our strategy for American energy dominance,” Hinson said in a statement. “Energy security is national security, and today’s announcement is a win for our biofuels producers and Ag community in Iowa.”

Hinson earlier this year led a bipartisan letter to President Donald Trump urging his administration to propose robust blending targets, after several biodiesel plants in the Midwest idled production after former President Joe Biden’s administration failed to issue final guidance on new tax incentives for the next generation of renewable fuels and set biomass-based diesel and advanced biofuels volumes below what the industry said was needed to meet actual production capacity.

Iowa Secretary of Agriculture Mike Naig similarly applauded the move, including proposed regulation changes to steer producers away from foreign-made feedstocks.

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“President Trump is once again demonstrating his commitment to showcasing how Iowa-made biofuels can be central to his effort to make America energy dominant,” Naig said in a statement. “Biofuels are a win for drivers and American farmers — they save drivers money at the pump, directly support corn and soybean prices, expand markets for farmers, and support rural jobs and communities.”

Naig also called on the administration to clarify that future EPA decisions on small refinery exemptions be done “in a manner that upholds current and future blending targets.”

EPA will host a public hearing on the rules July 8.

Iowa nonprofits warn of harms caused by Trump tax bill

The Iowa Nonprofit Alliance and 96 other nonprofit organizations from across the state sent a joint letter Thursday to Republican Iowa U.S. Senators Chuck Grassley and Joni Ernst calling for critical changes to the House-passed budget reconciliation bill.

The letter warns that specific provisions in the bill would harm Iowa communities, particularly in rural Iowa, by cutting access to food, health care and education, and by weakening charitable giving incentives that support local services.

“If these cuts go through, more Iowans will go without food and health care,” Alex Rice, executive director of the Iowa Nonprofit Alliance, said in a statement. “This isn’t just about dollars — it’s about real human consequences.”

The nonprofit groups warn the proposed $1 trillion in reduced spending outlined in the bill would increase food insecurity and jeopardize health coverage for some 730,000 Iowans, and threaten the viability of rural health care providers and grocery stores.

Cuts to Pell Grant funding would block pathways to better jobs, especially in a state already grappling with workforce shortages, the letter warns.

And proposed changes to charitable deductions and new tax burdens on nonprofits would significantly reduce donations and limit critical services at a time of rising community need, the alliance warns.

“Nonprofits are not just service providers — we are employers, community hubs, and often the last line of support for people in crisis,” Rice said. “We ask our senators to stand with Iowa’s communities and the organizations working every day to support them.”

Reynolds issues disaster proclamation for Palo Alto, Osceola counties

Iowa Gov. Kim Reynolds issued a disaster proclamation for Palo Alto and Osceola counties Friday after the areas experienced severe weather conditions, including wind damage, Tuesday.

The proclamation will allow state resources to be utilized to help areas impacted by severe whether and activates the Iowa Individual Assistance Grant Program, which provides grants up to $7,000 for households with incomes up to 200 percent of the federal poverty level. Grants are available for home or car repairs, replacement of personal property or food, and temporary housing expenses. The program application is open for 45 days from the date of the proclamation.

The proclamation also activates the Disaster Case Advocacy Program, which provides support for those who experience disaster-related hardship, injury or adverse conditions. There are no income eligibility requirements for this program and it closes 180 days from the date of the Governor’s proclamation.

More information on disaster-related resources can be found on the Iowa Homeland Security and Emergency Department website.

Gazette-Lee Des Moines Bureau