Indy Standard

WASHINGTON – 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. The lawmakers aim 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 set to expire at the end of the year. Although designed to boost domestic biofuel production, guidance from the Treasury is necessary for farmers and renewable fuel producers to engage 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,” the lawmakers wrote. “Lack of regulatory certainty is already putting thriving businesses at risk as fuel producers are unable to make important business decisions regarding their fuel.”

“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.