Groups Urge Treasury to Finalize Clean Fuels Credit

Cindy Zimmerman

Over two dozen organizations representing all segments of the renewable fuels industry sent a letter to Treasury Secretary Janet Yellen this week urging her to finalize and publish guidance for the §45Z Clean Fuels Production Credit as soon as possible.

The credit, which was created in the 2022 Inflation Reduction Act, is designed to incentivize domestic production of low-carbon fuels on a technology-neutral basis. The value of the credit is based on the life-cycle greenhouse gas emission score of each fuel.

“With the Sec. 45Z credit set to take effect January 1, 2025, our member companies and organizations may face significant headwinds and business risk if this guidance is not published promptly,” the groups write. “Any extended delays in publication of guidance for the Sec. 45Z credit may disrupt project timelines, impede capital flows, and threaten existing production and demand for low carbon renewable fuels.”

Among the 25 organizations signing the letter were Clean Fuels Alliance America, Airlines for America, American Soybean Association, Association of Equipment Manufacturers, National Corn Growers Association, National Oilseed Processors Association, Renewable Fuels Association, SAF Coalition, and U.S. Canola Association.

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