Hoosier State Today

U.S. Senators Todd Young (R-Ind.), Joni Ernst (R-Iowa), and a bipartisan, bicameral group of 50 colleagues have urged the U.S. Department of the Treasury to issue timely guidance on the 45Z Clean Fuel Production Credit. This move aims to provide farmers, blenders, retailers, and fuel users with the certainty needed to advance alternative fuel projects.

The 45Z Clean Fuel Production Credit consolidates and replaces several fuel-related credits that are set to expire at the end of the year. The credit is designed to boost domestic production of biofuels; however, guidance from the Treasury is required for farmers and renewable fuel producers to participate effectively in this new market.

“The 45Z credit should be leveraged to provide a forward-looking, technology-neutral market signal to increase our country’s production capacity for low-carbon, domestic renewable fuels and for existing biofuel production to invest in decarbonization,” stated the lawmakers. “Lack of regulatory certainty is already putting thriving businesses at risk as fuel producers are unable to make important business decisions regarding their fuel.”

The lawmakers further emphasized that proper implementation of this credit could fully mobilize the biofuel industry. “If properly implemented, this credit can fully mobilize the biofuel industry, growing our domestic manufacturing base, creating jobs, diversifying the U.S. energy portfolio, adding value to crops grown by American farmers, and offering consumers better, more affordable, and lower carbon options at the fuel pump and in the skies,” they concluded.

The letter has garnered bicameral and bipartisan support.