New Analysis: Trump-Era Biofuel Subsidies Drive Big Ag-Big Oil Alliance, Fuel Pollution 

A supercharged tax credit and new policy mandate provide ethanol and soy producers billions in profit while expanding fossil fuel infrastructure.

WASHINGTON — The Donald Trump administration’s biofuel subsidies are forging an unprecedented alliance between Big Ag and Big Oil that will cost taxpayers over $25 billion while driving increased pollution, according to a new analysis released by Friends of the Earth U.S.  

The analysis reveals how changes to the federal biofuel tax credits – particularly the 45Z clean fuel production credit – and the Renewable Fuel Standard are enabling major oil companies to invest billions in biofuels while biofuel producers use subsidized carbon waste to help oil companies extract more fossil fuels.  

“Trump has created an open season for polluters to co-opt massive subsidies while the rest of us are paying for it with higher food and energy bills,” said Sarah Lutz, Senior Climate Campaigner at Friends of the Earth U.S. “Now we have two toxic industries, Big Oil and Big Ag, teaming up to further boost their profit margins at the direct expense of our communities and climate.”  

Key findings: 

• Trump’s “One Big Beautiful Bill” weakened standards for the 45Z biofuel tax credit, allowing conventional dirty ethanol operations to qualify without making any changes to actually lower emissions.  
• Great Plains, a major biofuels refiner, expects to rake in about $90 million of taxpayer subsidies each year just from the 45Z tax credit subsidies for ethanol. Another biofuel company, Gevo, expects to gain $100 million annually from stacking taxpayer incentives for their ethanol based-biofuels. 
• The EPA’s inflated biofuel blending mandates under the Renewable Fuel Standard will boost corporate profits while potentially increasing food and energy prices. 

The full analysis, “Biofuels in the Trump Era: A Budding Romance Between Big Ag and Big Oil,” can be found here. 

Communications contact: Lindsay Tice, [email protected], (202)783-7400 ext. 8403