Twenty-five trade associations representing producers, feedstock providers, blenders, consumers, and retailers of low-carbon biofuels sent a letter to Treasury Secretary Janet Yellen. They’re asking the Treasury Department to finalize and publish guidance for the 45Z Clean Fuels Production Credit as soon as possible. The new credit 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 credit set to take effect on January 1, 2025, our member companies may face significant headwinds and business risks if this guidance isn’t published promptly,” the letter says. “Any extended delays in publishing the guidance 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, says the need for policy certainty is urgent.
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