Sen. Charles Grassley (R-IA) addressed whether farmers and biofuel producers might see rules for the 45Z tax credit before the end of the year, or if the blenders tax credit will be extended, during a call with reporters on Tuesday.

“45Z is not a subject of Congressional action, it’s a subject within the Treasury Department on the rules,” said Grassley. “Those of us in the Midwest are trying to influence Treasury that the rules should not penalize domestic producers to a disadvantage to imported feedstock.”

The 45Z clean fuel production tax credit is supposed to replace the $1 per gallon biodiesel and renewable diesel blenders tax credit, which is slated to expire at the end of this year and Grassley says an extension is already included in a package of tax credits. “It’s in with another whole bunch of maybe 20…tax credits that have to be passed and I expect them to be passed.”

That would mean the blenders tax credit would remain in place until rules for 45Z are complete.