New Mexico Officially Adopts Clean Fuel Program

Cindy Zimmerman

The New Mexico Environmental Improvement Board last week unanimously adopted regulations officially establishing the Clean Transportation Fuel Program, setting April 1 as the opening date for the Southwest’s first clean fuel market.

Signed into law by Gov. Michelle Lujan Grisham in 2024, the Clean Transportation Fuel Program is a market-based initiative that incentivizes and expands access to lower-carbon transportation fuels, including ethanol, biofuels, renewable diesel, renewable natural gas, electricity, and supporting infrastructure.

New Mexico is the first state in the Southwest to adopt a Clean Transportation Fuel Program and only the fourth state in the United States to do so. “Our state is officially open for clean fuel business investments – from cleaner renewable diesel and hydrogen for long-haul trucking to more charging infrastructure to accommodate our increasing battery-electric passenger vehicles,” said Environment Secretary James Kenney.

Clean Fuels Alliance America served on the advisory committee that developed the program’s regulations, working in collaboration with the Low Carbon Fuels Coalition to pass the enabling legislation.

“From a market perspective, New Mexico represents an almost 800-million-gallon opportunity for the biomass-based diesel industry,” said Cory-Ann Wind, Director of State Regulatory Affairs for Clean Fuels. “Since it sits along a key corridor for both feedstocks and finished fuels produced in the Gulf Coast and Midwest, New Mexico’s entry into the market not only expands the demand for clean fuels but further strengthens the supply chain”.

New Mexico’s leadership is particularly significant given its role as the second-largest oil-producing state in the U.S. and the fourth-largest natural gas producer.

“As the first non–West Coast state to implement a clean fuel standard, New Mexico proves that states with strong energy economies can also lead on clean fuel deployment and market certainty,” said Jeff Earl, Director of State Governmental Affairs for Clean Fuels. “This program adds real momentum to clean fuel standard adoption nationwide.”

Biodiesel, biofuels, Clean Fuels Alliance, Ethanol, Ethanol News, renewable diesel

Iowa Biodiesel Production Plummets

Cindy Zimmerman

Production of biodiesel in Iowa dropped by more than 30 percent last year with only eight facilities reporting production in 2025, according to the Iowa Renewable Fuels Association (IRFA).

Iowa’s biodiesel plants produced 244 million gallons in 2025, down 31% from 353 million gallons in 2024 as the industry faced great uncertainty in 2025 due to both low Renewable Fuel Standard (RFS) blending levels and a lapse in federal tax policy, said Iowa RFA Executive Director Monte Shaw. “Lack of tax policy coupled with low RFS numbers sent producers into a tailspin. We have plants trying to hang on by their fingertips waiting for clarity from DC. Hopefully we can get final guidance on the 45Z tax credits soon and certainty on a robust RFS level for 2026 soon after,” said Shaw.

2025 represented the last of a disappointingly low 3-year RFS blend rule put in place during the Biden Administration. While the Trump Administration has proposed a much more robust RFS rule for 2026-2027, it has not yet been finalized, leaving the industry in limbo. Further, the long-standing biodiesel blenders tax credit was allowed to expire at the end of 2024, to be replaced with a new clean fuel production tax credit, referred to as 45Z. However, the Biden IRS did not finalize the 45Z rules before 2025, again leaving the industry in limbo. While 45Z was modified by Congress in 2025, the Trump IRS has also not yet finalized rules for the tax credit.

“With President Trump being in Iowa tomorrow, we are hopeful that he can go back to D.C. and nudge those agencies to move faster to finalize both the new RFS blend levels and 45Z tax credit guidance,” Shaw added. “If so, 2026 could be a rebound year for biodiesel production. There are biodiesel plants sitting idle in Iowa. We hope they can operate again in a matter of weeks.”

Biodiesel, biofuels, Iowa RFA

Ethanol Report on E15 and NEC

Cindy Zimmerman

To say that ethanol supporters are disappointed by the inability of Congress to include nationwide, year-round E15 in the must-pass funding bill this past week is an understatement. Corn farmers and ethanol producers are expressing outrage, disillusionment, and even betrayal after weeks of working on compromise wording for a problem the industry has been trying to get fixed for more than a decade.

The new “Rural Domestic Energy Council” that Congress has created instead of taking action has a deadline of February 25 to come up with a plan – which is right in the middle of the Renewable Fuels Association’s National Ethanol Conference in Orlando next month. In this edition of The Ethanol Report, RFA president and CEO Geoff Cooper discusses how the E15 compromise in Congress fell apart and how the industry will move forward at the NEC.

Ethanol Report 1-23-26 21:01

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, E15, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA

Congress Devastates Supporters as it Punts on E15

Cindy Zimmerman

Corn growers at the nation’s Capitol this week (NCGA photo)

Supporters of nationwide, year-round E15 were once again kicked to the curb by Congress, after weeks of negotiations between farm, ethanol, oil and refinery interests to craft wording that would have included it in the funding bill. Instead lawmakers have opted to create a new “Rural Domestic Energy Council” to develop potential legislative proposals on E15.

It’s just too much for National Corn Growers Association President Jed Bower of Ohio. “Corn growers are disgusted, disappointed and disillusioned that after spending years of calling for passage of E15, Congress has again punted, and it has done so in a spectacularly weak and offensive way,” said Bower.

Renewable Fuels Association President and CEO Geoff Cooper says the decision to create this council was made by House leadership. “The idea is they’re going to keep working on these issues for the next month with the goal of having legislation ready to consider by February 25,” said Cooper, noting that year-round E15 approval costs nothing and would help farmers who are facing the worst economic crisis in almost 50 years.

“And they need real solutions right now. They don’t need more foot dragging, don’t need more debate. We don’t need a council. We don’t need more study on this issue. We just need to get this bill done,” said Cooper. “So we’re just extremely frustrated with the way this played out this week and I hope I’m wrong, but I just don’t have high hopes for the process that this council is going to undertake.”

Listen to Cooper’s comments here:
RFA CEO Geoff Cooper 4:14

Audio, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Clean Fuels Honors Industry Leaders

Cindy Zimmerman

John Deere received the Clean Fuels Initiative Award (Clean Fuels photo

Clean Fuels Alliance America recognized two industry leaders at its annual meeting this week in Orlando for their outstanding contributions in advancing biodiesel for heavy-duty equipment and renewable liquid heating fuels.

John Deere received the Initiative Award for its leadership in approving the use of B30 (30% biodiesel) blends across its entire portfolio of Tier 4 engines. This marks an important step forward for farmers seeking to leverage higher blends of renewable fuel in their operations. An early adopter of biodiesel, John Deere has demonstrated a strong commitment to advancing renewable fuels that both support farmers and reduce emissions.

R.W. Beckett Corporation was honored with the Impact Award (Clean Fuels photo)

R.W. Beckett Corporation was honored with the Impact Award for the company’s pivotal role in advancing the use of biodiesel in home heating applications. Under CEO Kevin Beckett’s leadership, R.W. Beckett is providing the fastest carbon reduction solution for the northeast, while providing safe, affordable and reliable heat through certification of burners and system components designed for B100 (100% biodiesel).

The Clean Fuels Awards celebrate champions across biodiesel, renewable diesel and sustainable aviation fuel industries who exemplify leadership, innovation and commitment to clean energy solutions.

Biodiesel, Clean Fuels Alliance

Iowa State Bill Addresses Pipeline Concerns

Cindy Zimmerman

A bill was introduced this week in the Iowa state legislature that supporters of carbon capture, utilization, and sequestration (CCUS) projects in the state hope will address some of the concerns of landowners.

Iowa Senate Majority Leader Mike Klimesh introduced the bill which “reforms the permit process to be less confrontational, expands the ability to voluntarily negotiate with landowners on 10 miles to either side of the noticed corridor, and requires developers to exhaust all voluntary easement options before eminent domain can be considered.”

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw believes the provisions in the bill will allow developers to reach more voluntary easements with landowners, ensuring landowner rights are respected while allowing projects to move forward.

“Sen. Klimesh’s bill to reform the Iowa Utilities Commission permit process will improve flexibility, giving projects more opportunities to find landowners willing to sign voluntary easements,” said Shaw. “While the bill is not perfect, it is a reasonable and pragmatic approach to dramatically improve the current process, which is unnecessarily rigid and confrontational. IRFA supports Sen. Klimesh’s bill. Everyone should. We will also continue to support additional solutions that enhance landowner protections while ensuring Iowa farmers have the infrastructure they need to access new and emerging markets.”

The Senate bill contrasts with legislation introduced last week in the Iowa House of Representatives House File 2104 that would ban the use of eminent domain for CO2 pipeline projects and carbon capture, use and sequestration (CCUS) initiatives. That bill passed in the House on a 64-28 vote Wednesday, which Shaw says “would effectively halt the development of CCUS infrastructure necessary for Iowa farmers to compete in emerging markets such as Sustainable Aviation Fuel (SAF) and marine fuel, and eliminate a source of new demand for corn at a time of growing supplies and falling prices.”

Shaw notes that a similar bill passed the House last year with 85 votes. “Today’s vote shows the effort to essentially ban these vital projects is losing steam as more people recognize their importance and benefits to the public good. IRFA strongly urges the Iowa Senate to reject this restrictive, ill-considered legislation. Rather, the Senate should focus on improving landowner protections, reforming the permitting process, and providing a path forward for the CCUS projects.”

Carbon, corn, Ethanol, Iowa RFA

Stakeholders Concerned E15 is Now or Never

Cindy Zimmerman

Iowa ethanol stakeholders are sounding the alarm that if Congress fails to include E15 in the spending bill this month, it could be the last chance the industry has to make it happen for some time.

“We have an opportunity in the next couple of weeks and we won’t have another opportunity probably for years,” said Iowa Renewable Fuels Association Executive Director Monte Shaw during a press conference Wednesday unveiling a new corn supply study. “We view this as a now-or-never, a do-or-die situation. And with what’s at stake in the ag economy right now, we need to pull out every stop and get this done. Failure is not an option.”

As of Wednesday morning, legislation allowing nationwide, year-round sales of E15 was not included in the fiscal 2026 funding package, and neither was a new round of assistance for farmers. The study released by Iowa RFA and Iowa Corn underscores the drastic need for immediate demand drivers for corn to help farm profitability, and that includes nationwide, year-round E15 and access to ultra-low carbon ethanol markets.

“Iowa corn farmers are struggling. Many of us don’t know what the future holds without access to new markets,” said Iowa Corn Growers Association President Mark Mueller, who farms in Waverly, Iowa. “We farmers are working on very, very tight margins…we have high input prices, we have low commodity prices and we’re producing more corn all the time. We need more places to move our corn.”

Kevin Studer, Iowa Corn VP Government Relations, says there is no other option. “We need a market now….and E15 is that solution,” said Studer. “I have taken some calls from farmers, they’re in a very dark spot…in eight years at Iowa Corn, I’ve never taken calls like that.”

The study found that year-round E15 would provide robust near-term demand with the ability to return corn prices to profitable levels. However, corn supplies would soon exceed demand once that occurs. For the longer term, E15 buys time for corn farmers and renewable fuels producers to develop new markets in the marine and aviation sectors. “Globally, the marine fuel market is a 70-80 billion gallon a year market,” said economist David Miller, Decision Innovation Solutions. “If corn could take even 2-3 percent of that market with ultra-low carbon ethanol it would very much help close the demand gap.”

Listen to the press conference here:
Iowa Corn and Iowa RFA presser 45:46

Audio, corn, Ethanol, Iowa RFA

RFA Comments on Canada Clean Fuel Proposal

Cindy Zimmerman

The Renewable Fuels Association this week submitted comments to Environment and Climate Change Canada (ECCC) expressing strong support for Canada’s Clean Fuel Regulations (CFR) and potential amendments to the program.

The comments respond to a December ECCC discussion paper that laid out potential targeted amendments meant to “strengthen the resiliency and support the development of Canada’s low-carbon fuel sector, while maintaining the Regulations’ primary focus on lowering GHG emissions and transitioning to a low-carbon economy.”

Specifically, RFA voiced its support for the potential addition of a CFR compliance credit “multiplier” for low-carbon fuels made in Canada as a means of harmonizing biofuel production incentives on both sides of the border.

Ryan LeGrand, Jake Enwright, Emily Skor, Geoff Cooper and Mark Wilson.

Earlier this month, RFA president and CEO Geoff Cooper joined U.S. Grains & BioProducts Council (USGBC) Chairman Mark Wilson and USGBC President and CEO Ryan LeGrand on a trip to Ottawa, Canada for meetings with government officials and other leaders in the energy and transportation sectors.

Delegation meetings included the ECCC, Canadian Fuels Association, and Canadian Energy Marketers Association President and CEO Jake Enwright. Conversations covered the human and environmental benefits of ethanol and biofuels’ role in uplifting producers and the broader agricultural community. The group also met with Natural Resources Canada and Global Trade Canada to discuss the proposed changes to Canada’s clean fuels regulation and reinforce the benefits of strong trade relations between the countries.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA, USGC

2026 Ethanol Production Off to Record Start

Cindy Zimmerman

According to the latest Energy Information Agency data analyzed by the Renewable Fuels Association, U.S. ethanol production is getting off to a record start this year.

For the week ending January 9, ethanol production skyrocketed by nearly nine percent to a record high of 1.20 million barrels per day, equivalent to 50.23 million gallons daily. Output was 9.2% higher than the same week last year and 13.7% above the three-year average for the week. The four-week average ethanol production rate increased 1.4% to 1.13 million b/d, equivalent to an annualized rate of 17.32 billion gallons (bg).

Ethanol stocks scaled up 3.5% to 24.5 million barrels but were 2.1% less than the same week last year and 0.9% below the three-year average.
Ethanol exports strengthened by 5.3% to an estimated 119,000 b/d (5.0 million gallons/day).

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

Grassley Demands Answers for Small Refinery Exemptions

Cindy Zimmerman

Sen. Chuck Grassley (R-IA) sent a letter this week to Environmental Protection Agency (EPA) Administrator Lee Zeldin regarding concerns that some refiners may be making false claims to receive Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS).

Sen. Grassley sent the letter as a follow up on a request sent by Iowa Attorney General Brenna Bird in October asking for an investigation into small refiners that may be manipulating the RFS by falsely claiming economic hardship to the EPA in order to be exempted from blending renewable fuels or buying renewable fuel credits.

“Attorney General Bird’s letter raises meaningful questions about Small Refinery Exemptions. Iowa’s biofuel producers need timely answers about the health of their industry. For 20 years, the Renewable Fuel Standard has supported biofuels producers, family farmers and rural communities. Its integrity is essential for long-term success. I thank Administrator Zeldin for hearing my concerns for the biofuel industry, and I urge him to fully investigate these allegations,” Grassley said.

Listen to Grassley’s comments here:
Sen. Chuck Grassley (2:17)

Audio, EPA, Ethanol, Ethanol News, RFS