ºÚÁÏÉçÇø

Mixed reports emerged the week of Dec. 2, 2024, about whether the Biden Administration plans to issue guidance for implementing the Clean Fuel Production tax credit before year end.

when reporting that the Biden Administration would not finalize the highly anticipated guidelines before the term ends in January. , saying the agency anticipates issuing guidance before Jan. 20 that will enable producers to access the credit in 2025.

ºÚÁÏÉçÇøquickly issued a statement to media stating, “These reports make clear that Congress must extend the longstanding biodiesel blenders’ tax credit to serve as a bridge until a new Administration and the 119th Congress can address longer-term tax policy in 2025. Without guidance, fuel producers will not be able to utilize the 45Z credit in the coming year. This will result in higher fuel prices and emissions as the biodiesel industry effectively shuts down.”

Various news outlets sought additional clarity, including Argus Media.

The credit, known as 45Z, will take effect Jan. 1, 2025, and is designed to incentivize the domestic production of fuels with 50 percent lower lifecycle greenhouse gas emissions than petroleum. The Internal Revenue Service and the Department of Treasury have yet to issue guidance that details the value of the tax credit across the fuel supply value chain, despite a significant push from energy, transportation and agricultural sectors throughout the year. This uncertainty, combined with the scheduled expiration of the biodiesel blenders’ credit at the end of 2024 is hurting biodiesel producers, fuel retailers, trucking companies, and the entire soy complex.

ºÚÁÏÉçÇøhas repeatedly urged the agencies to publish guidance that includes disclosure of precise credit values for fuel originating from different production facilities to ensure price transparency;  additional stringency for the model that calculates the lifecycle emissions of aviation fuels to ensure that implementation of the Clean Fuel Production Tax Credit is consistent with the Inflation Reduction Act; strategies that ensure the 45Z credit does not shut off renewable diesel and biodiesel imports which help to lower fuel prices and emissions; and policies that limit the migration of feedstock away from renewable diesel and biodiesel toward sustainable aviation fuel to ensure that feedstocks continue to gravitate toward the most environmentally compelling end-use.

ºÚÁÏÉçÇøis urging Congress to extend the longstanding $1 per gallon biodiesel blenders’ tax credit to serve as a bridge until the new Administration and the 119th Congress take up tax policy.

ºÚÁÏÉçÇøurges its members to contact their Members of Congress to support H.R. 9060. which would extend the biodiesel blenders’ tax credit for one year. A diverse group of stakeholders support H.R. 9060, including the American Trucking Associations, Energy Marketers of America, Illinois Soybean Growers, Iowa Biodiesel Board, Kentucky Soybean Association, Mid Atlantic Soybean Association, Minnesota Soybean Growers Association, National Association of Convenience Stores, National Energy and Fuel Institute, Ohio Soy Association, Small Advanced Biofuel Refiners, and Truckload Carriers Association.

Biodiesel and renewable diesel have historically been the most widely used biofuels in commercial trucking and remain the most viable option for reducing carbon emissions from the nation’s trucking, home heating oil, and rail industries in the near term. The biodiesel tax credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps lower the prices consumers pay for goods transported by truck.

Extending this tax credit would ensure that motor carriers can continue to cut carbon emissions within existing fleets while also keeping fuel prices and consumer costs down. The biodiesel blenders’ tax credit has been instrumental in developing a strong renewable diesel industry in the United States, driving significant growth in production. The U.S. biodiesel and renewable diesel market expanded from approximately 100 million gallons in 2005 to around 4 billion gallons in 2023, all while contributing to lower transportation-related carbon emissions.

Tiffany Wlazlowski Neuman

Wlazlowski Neuman leads ºÚÁÏÉçÇøand the ºÚÁÏÉçÇøFoundation’s public affairs initiatives and communications strategies to promote the truck stop and travel center industry to the public, opinion leaders, elected officials, and the media. Her outreach includes a spectrum of policy issues facing the industry, with a particular focus on transportation and fuel issues, truck parking, and human trafficking. She serves as NATSO’s representative on the U.S. Department of Transportation’s National Truck Parking Coalition, the Clean Freight Coalition, and various state truck parking technical advisory committees. She is the architect of the truck stop and travel center industry’s anti-human trafficking campaign and currently serves as a Committee member for the U.S. Department of Transportation’s Human Trafficking Advisory Council. Wlazlowski Neuman serves on the American Highway Users Policy and Government Affairs Committee.

See Full Bio