Trump Says Congress ‘Close’ to Deal for Year-Round E15

Politico’s Grace Yarrow reported that “President Donald Trump called on Congress Tuesday to resolve differences over year-round sales of E15 fuel and to finalize an agreement that would be a boon for struggling corn farmers.”

“‘The people of Iowa know that I am trusting Speaker Mike Johnson, who’s great, and Leader John Thune, who’s great, that’s House and Senate, to find a deal that works for farmers, consumers and refiners, including small and mid-sized refiners,’ Trump said during a speech in Clive, Iowa,” according to Yarrow’s reporting. “‘In other words, to get E15 approved, and they’re working on it. They’re very close to getting it done.'”

.@POTUS: During the campaign, I promised to support E-15 year-round — and I want the people of Iowa to know that Congress is working on a deal, and when they send it to my desk, I will sign it without delay. pic.twitter.com/6LNfF6gOEZ

— Rapid Response 47 (@RapidResponse47) January 27, 2026

“The president’s comments put the White House squarely on the side of ethanol proponents in the battle among Republican lawmakers and agriculture and biofuels groups over legislation that would expand markets for corn farmers but would irritate some oil companies and refiners,” Yarrow reported. “Midwestern Republicans failed last week in an effort to push House GOP leaders to include year-round E15 in a government funding package due for passage by the end of January. Leaders demurred and instead established a rural energy working group that will aim to find a deal between ethanol and oil interests in the next month.”

White House Has Completed 45Z Clean Fuel Production Tax Credit Review

At the same time Trump addressed E15 sales, Biodiesel Magazine’s Erin Krueger reported that “the White House Office of Management and Budget on Jan. 23 concluded its review of a proposed rule to implement guidance for the 45Z clean fuel production credit, according to information posted to the agency’s website.”

“The proposed rule was delivered to the OMB by the U.S. Department of Treasury and Internal Revenue Service on Dec. 17. The OMB website indicates the agency scheduled 16 meetings with industry stakeholders in January to discuss the proposed guidance, with the final meeting held Jan. 23,” Krueger reported. “…According to information posted to the OMB website, the proposed rule was modified during the review process and is now moving forward. The OMB website estimates a notice of proposed rulemaking (NPRM) is currently scheduled to be released for public comment in May.”

“The 45Z tax credit was first established by the Inflation Reduction Act of 2022, providing a tax credit for the production and sale of low-emission transportation fuels,” Kruger reported. “…The 45Z credit was updated and extended as part of the One Big Beautiful Bill Act, which was signed by President Trump in July 2025.”

“Although the 45Z credit was created in 2023 and entered into force in 2025, Treasury and IRS have failed to release full guidance,” Krueger reported. “Guidance delays have been particularly harmful to the biobased diesel industry, with domestic production down significantly in 2025 when compared to the previous year.”

Progressive Farmer’s Todd Neeley reported that “with the Trump administration having completed its review of proposed rules for the 45Z Clean Fuels Production tax credit ahead of President Donald Trump’s visit to Iowa this week, a national biofuels group asked Trump in a letter to release the proposal.”

“On Monday, Clean Fuels Alliance America made the case to Trump that biodiesel, renewable diesel and the sustainable aviation fuel industry are important to rural Americans and need federal support,” Neeley reported. “‘Just last week, your administration completed interagency review on proposed rules for the 45Z Clean Fuel Production Credit — we hope they will be publicized this week,’ Kurt Kovaric, vice president of federal affairs for Clean Fuels, said in a letter to Trump.”

“Kovarik said America’s soybean and canola farmers, oilseed processors, livestock industry, and biodiesel, renewable diesel and SAF producers need these policies finalized,” Neeley reported. “‘Regulatory delays create intolerable market uncertainty, putting the biodiesel and soybean industry’s investments and planned growth at risk,’ Kovarik told Trump.”