by Sean Reilly (Politico Pro Climatewire) The move opens the door to revise a suite of rules clamping down on heat-trapping emissions, especially from the industrial and transportation sectors. -- EPA has taken its first public step toward revisiting the landmark 2009 determination that underpins most of the agency's climate regulations.
The move marks an introductory and pivotal step for the Trump administration to rewrite the foundation of a suite of rules that aim to clamp down on heat-trapping emissions, especially from the industrial and transportation sectors.
EPA on Monday sent the proposed rule, titled “Greenhouse Gas Endangerment Finding and Motor Vehicle Reconsideration,” to the White House regulations office for a routine review, according to a notice posted on a government tracking website.
While the proposal’s contents were not made public, EPA Administrator Lee Zeldin had targeted the endangerment finding in a list of planned regulatory rollbacks released in March.
At a congressional hearing in May, he suggested that the original Obama-era finding was flawed because it failed to consider the harm done by each of the half-dozen greenhouse gases deemed dangerous because they contribute to global climate change. READ MORE
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Excerpt from Aiken Gump: EPA faces scientific and legal barriers to challenging the endangerment finding.
First, scientific data on the impacts of GHGs on climate change has only increased since the original 2009 finding. Scientists can more readily link impacts attributable to anthropogenic climate change and the relative contributions of different sources for those impacts, undermining arguments that emissions reductions in one jurisdiction will not meaningfully “contribute” to addressing global climate change.9
Second, any decision against the findings would be immediately challenged in court. The findings have been upheld against various legal challenges over the years, with the Supreme Court declining to hear challenges to it as recently as December 11, 2023.10
Nevertheless, recent landmark decisions in the Supreme Court have demonstrated a willingness to deviate from precedent in matters of environmental regulations and otherwise. If challenged, these potential legal proceedings will present opportunities for engagement for environmental and industry groups to file amicus briefs or join likely challenges from Democratic states. READ MORE
Excerpt from Policy Integrity: EPA made the 2009 Endangerment Finding following the Supreme Court’s determinations that greenhouse gases are “air pollutants” under the Clean Air Act. The Supreme Court further clarified that “[i]f EPA makes a finding of endangerment, the Clean Air Act requires the agency to regulate emissions of the deleterious pollutant from new motor vehicles.” Consistent with this obligation, after making the 2009 Endangerment Finding, EPA then proceeded to issue regulations to limit greenhouse gas emissions from vehicles, and later from power plants, landfills, aircraft, and the oil and gas sector. Many of EPA’s greenhouse gas regulations, alongside the 2009 Endangerment Finding itself, are now in the crosshairs of EPA’s reconsideration.
EPA’s March 2025 press release emphasized that when EPA made the Endangerment Finding in 2009, the agency did not consider the costs of future regulations that would limit emissions. That’s true—but it is not evidence that regulatory costs went unconsidered. To the contrary, EPA considered regulatory costs when the relevant statutory provisions indicated they should be considered: at the time it issued the various regulations limiting greenhouse gas emissions from particular sectors. As explained in this issue brief, this approach is required by the law and best practice.
The Clean Air Act requires EPA to assess regulatory costs when setting emission standards, not when making an endangerment finding that underlies the regulations. Under the Clean Air Act, EPA first makes a scientific judgment regarding whether certain emissions “endanger public health or welfare” (a.k.a., an endangerment finding). For emissions meeting that criterion, EPA then separately issues emission standards. The courts have made clear that cost is considered only at the stage of issuing specific standards to limit emissions. The plain text of the Clean Air Act compels this approach, and Supreme Court case law further affirms this understanding of the text and appropriate practice. READ MORE
Excerpt from Politico Pro: The EPA’s proposal to reconsider its 16-year-old bedrock finding on the dangers of greenhouse gases is now in the White House’s hands — a move that sets the stage for a broad attack on a wide range of federal climate regulations.
Details on the proposal are still unclear, but it is expected to significantly weaken — if not revoke outright — the agency’s 2009 declaration that greenhouse gases endanger human health. That in turn would free EPA from the legal obligation to regulate climate pollution from most sources, including power plants, cars and trucks, and virtually any other source.
The EPA submitted its proposal (Reg. 2060-AW71) to the White House Office of Information and Regulatory Affairs for review on Monday, according to the agency’s website.
The rule is styled as "Greenhouse Gas Endangerment Finding and Motor Vehicle Reconsideration Rule" — indicating it may revoke the agency's tailpipe emissions standards for vehicles at the same time it undoes the endangerment finding. That would free automakers from having to comply with Biden-era rules that Republicans have argued amounted to a de facto electric vehicle mandate. Restoring auto industry jobs through deregulation is a main pillar of Administrator Lee Zeldin's EPA agenda . READ MORE
Excerpt from Inside EPA: EPA has sent to the White House for final review a proposed rule walking back the landmark GHG endangerment finding and vehicle emissions standards -- confirming expectations that the agency would combine its endangerment finding reconsideration with a vehicle rule repeal even as the regulation’s exact scope remains unclear. The Office of Management and Budget (OMB) received the proposal, titled “Greenhouse Gas Endangerment Finding and Motor Vehicle Reconsideration Rule,” on June 30. EPA’s planned rollback of the greenhouse gas endangerment... READ MORE
by Jim Lane (Biofuels Digest) Senate passage sets the stage for House vote, reshaping renewable incentives along partisan and regional lines -- ... For biofuels, the bill could not have come at a more pivotal moment. With production slowed by policy uncertainty, and the sector waiting for clarity on tax credits and market signals, industry groups say the legislation provides the most significant boost in years. Among other provisions, it extends the 45Z Clean Fuel Production Tax Credit through 2029, revives the Small Agri-Biodiesel Producer Credit at 20 cents per gallon, and maintains the transferability rules that make the credits usable for producers without large tax liabilities.
“This policy comes at a critical time for American agriculture,” said Joshua Shields, senior vice president at POET, the world’s largest biofuels producer. “An extended window for 45Z gives us greater certainty to invest in new technologies and practices that are pivotal to strengthening markets for farmers and ensuring American biofuels energy dominance.”
Grant Kimberley, executive director of the Iowa Biodiesel Board, echoed that optimism. “These improvements to the biomass-based diesel tax incentive come at a pivotal moment for the industry, which has seen months of uncertainty, stalled production and investment hesitation,” Kimberley said. He credited Iowa Senators Chuck Grassley and Joni Ernst for championing the provisions. “This gives us much-needed certainty for the near future.”
Biofuels in, Solar Out
But while renewable fuels secured new guarantees, other clean energy sectors saw incentives scaled back or ended outright.
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Representative John Garamendi (D-CA) called it “the largest transfer of wealth from working Americans in U.S. history,” arguing that the bill “kills medical services for 16 million people” and “slashes clean energy tax credits” to fund sweeping tax reductions that disproportionately benefit wealthier households. “Not only is Trump slashing the social safety net, he’s going after our power grid too,” Garamendi said in a statement, warning of higher energy costs and potential blackouts as solar and wind incentives expire.
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Biofuels, rooted in farm states and rural economies, retain deep bipartisan appeal—particularly among Republicans eager to deliver for agriculture and domestic fuel producers. By contrast, solar, wind, and electric vehicles are often associated with urban corridors, technology companies, and policies championed by Democrats in states like California and New York.
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Senators Rand Paul (R-KY), Thom Tillis (R-NC), and Susan Collins (R-ME) joined all Democrats in voting no, citing concerns over the legislation’s fiscal impact and Medicaid cuts.
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Critics, however, point to estimates that the legislation will increase deficits by over $3 trillion over the next decade. Among them was entrepreneur Elon Musk, who tweeted that lawmakers supporting the bill should “hang their head in shame” for advancing what he called the biggest debt increase in American history.
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At the same time, the bill imposes new work requirements and eligibility checks for Medicaid and nutrition assistance programs. Nonpartisan analysts estimate nearly 16 million Americans could lose health coverage as a result. Democrats described the cuts as unprecedented, with Garamendi warning that a typical 60-year-old California couple could see their insurance costs rise by over $22,000 per year.
For renewable fuels producers, however, the legislation represents a measure of stability after years of policy volatility. The Advanced Biofuels Association offered qualified support, praising the biofuels provisions but warning that restrictions on foreign feedstocks could raise costs.
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The legislation’s focus on domestic supply chains also has implications for feedstock sourcing. While many new projects producing renewable diesel and sustainable aviation fuel rely on imported waste oils—especially used cooking oil from China—the most abundant, affordable U.S. feedstocks are agricultural and forest residues. Proponents argue that prioritizing domestic materials strengthens energy security and rural economies, though some producers warn it could limit growth by narrowing the feedstock pool at a time of rising demand.
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Biofuels, with their links to agriculture and domestic supply chains, emerged as a clear beneficiary. READ MORE
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Excerpt from Politico Pro Energywire: The fossil fuel sector is taking a victory lap following Senate passage Tuesday of high-profile legislation that also doubled down on Republican plans to slash clean energy tax breaks.
“This historic legislation will help usher in a new era of energy dominance by unlocking opportunities for investment, opening lease sales and expanding access to oil and natural gas development,” American Petroleum Institute President Mike Sommers said in a statement after the Senate passage. “We will continue to work with policymakers to get this final package to President Trump’s desk.”
The bill was revised just before passage to remove an excise tax on wind and solar projects and ease the timeline for phasing out credits for those industries, but clean energy advocates found little to cheer about.
"Despite limited improvements, this legislation undermines the very foundation of America’s manufacturing comeback and global energy leadership. If this bill becomes law, families will face higher electric bills, factories will shut down, Americans will lose their jobs, and our electric grid will grow weaker," said Abigail Ross Hopper, president of the Solar Energy Industries Association. READ MORE
Excerpt from Politico Pro E&E News: From fiscal hawks to vulnerable centrists worried about the Senate’s steeper Medicaid cuts, a substantial cross-section of the House GOP conference would rather take the time to amend the package and send it back to the Senate.
Head GOP rebel Chip Roy of Texas said Tuesday the chances of passing a bill out of the House by that deadline are “a hell of a lot lower than they were even 48 hours ago” based on what he saw of the Senate bill.
And, for now, some are openly questioning Trump’s push to “GET IT DONE” by July 4. READ MORE
Excerpt from Renewable Fuels Association: With today’s (July 3, 2025) passage of the One Big Beautiful Bill Act, the Renewable Fuels Association applauded the inclusion of several key tax provisions that will enhance the role of the U.S. ethanol industry in contributing to American energy security and innovation.
“From the very beginning of the budget reconciliation process, our goal was to advocate for the inclusion of tax policies that provide certainty, growth opportunities, and market stability for U.S. ethanol producers. The One Big Beautiful Bill Act passed today accomplishes that objective. We thank the many renewable fuel supporters in Congress and President Trump for ensuring American ethanol producers and farmers had a voice and seat at the table in this process,” said Geoff Cooper, RFA President and CEO. “The extension and modifications to the 45Z clean fuel production credit, reinstatement of the Research and Development immediate expensing provisions, and improvement of the 45Q carbon sequestration and utilization credit will provide a growth-oriented tax policy climate that ethanol producers can count on, improving the role that renewable fuels can play in helping reach our nation’s energy independence goals.”
Specifically, the OBBBA includes the following improvements to the 45Z Clean Fuel tax provision:
- Extends 45Z by two years, to the end of 2029.
- Restricts eligibility for 45Z to fuels made from feedstocks grown in the U.S., Canada, and Mexico.
- Retains full transferability throughout the term of the 45Z credit.
- Harmonizes indirect land use change emissions with actual data and evidence, resulting in zero ILUC penalty for corn ethanol.
Other key ethanol-related provisions in the budget reconciliation package include:
- Retains key enhancements to 45Q previously made in the Inflation Reduction Act and allows other carbon uses like enhanced oil recovery to qualify for equal credit values.
- Reinstates RD/RE immediate expensing provision that expired in 2022 under the Tax Cuts and Jobs Act.
“With budget reconciliation now in the rearview mirror, RFA, along with Congress and the Trump Administration, can now turn our attention to other key priorities to U.S. ethanol producers, such as legislation allowing for year-round E15 along with boosting the role of renewable fuels through robust renewable volume obligations under the RFS and a judicious resolution to the mounting number of pending Small Refinery Exemption petitions,” said Cooper. READ MORE
Excerpt from American Coalition for Ethanol: The American Coalition for Ethanol (ACE) today praised the inclusion and extension of the Clean Fuel Production Credit—commonly referred to as Section 45Z—in the final tax and spending package passed by Congress and headed to President Trump’s desk. ACE CEO Brian Jennings issued the following statement:
“We’re grateful to our Congressional champions for their steadfast leadership to support and strengthen the 45Z credit, which is remarkable considering the fact most other IRA-era tax credits were limited or phased-out in the final package. While there were other improvements we had hoped to achieve in the final 45Z language, restoring transferability of the credit, removing indirect land use change (ILUC) penalties, and restricting feedstock eligibility to USMCA countries will strengthen the credit from its original version.”
“In terms of the credit term, we preferred the House language which would have extended 45Z through 2031, and we also urged Congress to specifically allow low-carbon farming practices to be monetized through 45Z with the feedstock calculator and guidelines USDA has released, but nevertheless ACE remains committed to working with federal agencies to implement the credit in ways that reward on-farm conservation practices and accelerate the use of homegrown, low-carbon biofuels.”
ACE has been working to help monetize low-carbon farming practices in 45Z through their 10-State USDA Regional Conservation Partnership Program (RCPP). Once farmers participating in the project have implemented reduced-till, 4R nutrient management, or cover crops, land-grant university scientists will collect soil samples and other field-level data about the resulting carbon benefits to better calibrate the GREET model and the USDA FDCIC to generate more reliable carbon scores for farming practices. Running the data through these models solves for ‘information gaps’ which currently prevent farmers and ethanol producers from monetizing ag practices in 45Z and through regulated fuel markets.
The ACE RCPP is the key to unlock 45Z to allow ethanol producers to generate and benefit from low-carbon farming practices.
The 45Z credit, originally enacted under the Inflation Reduction Act, provides technology-neutral incentives for clean fuels based on lifecycle greenhouse gas emissions. The final version extends the 45Z credit through the end of 2029—two years beyond its current expiration date of Dec. 31, 2027. It also limits eligibility to fuels made from feedstocks produced or grown in the U.S., Mexico, or Canada, and revises how lifecycle GHG emissions are calculated by excluding emissions from indirect land use change (ILUC). READ MORE
Excerpt from Alternative Fuels and Chemicals Coalition: The Alternative Fuels and Chemicals Coalition (AFCC) Executive Vice President Rina Singh released the following statement after President Trump signed the One Big Beautiful Bill Act into law:
“AFCC applauds the enactment of the One Big Beautiful Bill Act (OBBBA) today (July 4, 2025) – the Act contains several provisions which will advance our sector and strengthen our national energy dominance. The ACT includes tax incentives for clean fuel production, hydrogen, carbon capture and sequestration, and electricity. Preserving feedstock eligibility and animal manure provision. The Act carries President Trump’s signature for growing it here, building it here, and selling it here which he ran on during his campaign. This provides huge investment opportunities and stability for producers and developers, allowing projects to move forward. DOE Loan Program Office received funding, transferability and sales provisions were preserved.”
“Alternative Fuels and Chemicals Coalition (AFCC) looks forward to the implementation for OBBBA and working with federal agencies and policymakers."
About the Alternative Fuels and Chemicals Coalition (AFCC): Advocating for Public Policies to Promote the Development and Production of Alternative Fuels, Renewable Chemicals, Biobased Products, and Sustainable Synthetic Aviation Fuels. READ MORE
Excerpt from U.S. Department of Agriculture: “It puts American Farmers First by preventing countries such as China and Brazil from flooding our markets with biofuel feedstocks that compete with American grown soy, milo, and corn. It extends the 45Z clean fuel tax credit to enhance our domestic energy security. READ MORE