Little Apple Times

U.S. Representatives Tracey Mann (KS-01) and Marcy Kaptur (OH-09) have led a bipartisan group of 39 colleagues in urging the U.S. Department of Treasury to expedite the issuance of final guidance for the Clean Fuel Production Credit before its January 1 deadline. The representatives also called for restricting eligibility to renewable fuels made from domestic feedstocks by domestic fuel producers.

The letter, supported by various agricultural and energy organizations, emphasizes that the credit is intended to bolster American energy independence by prioritizing domestic producers and biofuels made with domestically produced feedstocks.

“As you know, the Clean Fuel Production Credit (45Z) is intended to stimulate the development of a domestic fuel supply chain,” the Members wrote. “If drafted and implemented per congressional intent, 45Z will support American energy independence by incentivizing the production of biofuels made with domestically produced feedstocks, while continuing to support global renewable fuel production made from a wide array of feedstocks.”

“Treasury must ensure that the 45Z tax credit is only applicable to fuels produced domestically with domestic feedstocks, so American farmers, processors, businesses, investors, and end-users can benefit from the 45Z tax credit and the long-anticipated promise of new biofuels markets,” they continued.

The letter has garnered support from organizations including the American Farm Bureau Federation, National Farmers Union, National Oilseed Processors Association (NOPA), American Soybean Association, National Corn Growers Association, Growth Energy, Scoular, and Louis Dreyfus Company.

Kailee Tkacz Buller, President and CEO of NOPA stated: “Without this fix, the 45Z credit will incentivize the continued use of foreign feedstocks over U.S. feedstocks produced by American farmers. NOPA members have made commitments to expand U.S. crush capacity by 30% with $6 billion in investments to process domestic row crops into biofuels in line with state and federal renewable fuel and tax provisions; however current market conditions are beginning to call into question the viability of future investments.”

Ed Prosser, Senior Vice President at Scoular added: “In its current form, the 45Z credit will use American tax dollars to displace the American farmer by favoring foreign products... The bipartisan letter led by Representative Mann and his bipartisan coalition puts farmers in a competitive position.”

In July 2024, Reps. Mann and Kaptur had joined 52 colleagues in urging U.S. Treasury Secretary Janet Yellen to finalize implementation rules for 45Z.

The members requested a response to their latest letter by September 27, 2024.

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