Groups Urge Treasury to Promptly Complete §45Z Clean Fuels Production Credit Guidance

WASHINGTON, DC – Today, 25 trade associations representing producers, feedstock providers, blenders, consumers, and retailers of low-carbon, renewable fuels sent a letter to Treasury Secretary Janet Yellen, urging Treasury to finalize and publish guidance for the §45Z Clean Fuels Production Credit as soon as possible. The new credit, adopted 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.”

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, added, “U.S. biodiesel and renewable diesel producers are facing uncertainty as the transition from the biodiesel and renewable diesel blender credit to the producer credit. They are facing difficulties already as they try to negotiate feedstock and fuel offtake contracts for next year. The need for policy certainty is urgent.”

Joining Clean Fuels in signing the letter are Advanced Biofuels Business Council, Airlines for America, Alternative Fuels & Chemicals Coalition, American Biogas Council, American Short Line and Regional Railroads Association, American Soybean Association, Associated Equipment Distributors, Association of American Railroads, Association of Equipment Manufacturers, Cargo Airline Association, Coalition for Renewable Natural Gas, General Aviation Manufacturers Association, Growth Energy, Methanol Institute, National Air Transportation Association, National Business Aviation Association, National Corn Growers Association, National Oilseed Processors Association, North American Renderers Association, Renewable Fuel Association, SAF Coalition, U.S. Canola Association, Vertical Aviation International, and Waste Gas Capture Initiative.

The letter is available on

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