Letter
Groups Urge Treasury to Promptly Complete §45Z Clean Fuels Production Credit Guidance
WASHINGTON, DC – Today, NOPA joined 24 other trade associations representing producers, feedstock providers, blenders, consumers, and retailers of low-carbon, renewable fuels sent a letter to Treasury Secretary Janet Yellen, urging Treasury to finalize and publish guidance for the §45Z Clean Fuels Production Credit as soon as possible. The new credit, adopted in the 2022 Inflation Reduction Act, 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 Sec. 45Z credit set to take effect January 1, 2025, our member companies and organizations may face significant headwinds and business risk if this guidance is not published promptly,” the groups write. “Any extended delays in publication of guidance for the Sec. 45Z credit may disrupt project timelines, impede capital flows, and threaten existing production and demand for low carbon renewable fuels.”