NOPA and ASA Praise Continued Bipartisan Efforts to Support Domestic Feedstocks in 45Z Rulemaking

41 Members of the House of Representatives press Treasury Department to provide certainty to U.S. farmers and other biofuel stakeholders

WASHINGTON, September 9, 2024 – The National Oilseed Processors Association (NOPA) and the American Soybean Association (ASA) today applauded a bipartisan effort by members of the House of Representatives urging the Treasury Department’s final guidance for the Section 45Z Clean Fuel Production Tax Credit restrict the eligibility to renewable fuels made from domestically-sourced feedstocks. 

In a letter to Treasury Secretary Janet Yellen, Reps. Tracy Mann, R-Kan., and Marcy Kaptur, D-Ohio, along with 39 fellow members of the House of Representatives also called for the department to expedite guidance for 45Z in advance of its January 1, 2025 statutory deadline.

“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. While the use of foreign feedstocks can play an important role in producing domestically manufactured ethanol, biodiesel, renewable diesel, and sustainable aviation fuel, Treasury must be clear that 45Z only applies to biofuels produced from domestic feedstocks by domestic fuel producers,” the lawmakers wrote.

Biodiesel fuel producers are increasingly looking to imports of low carbon intensity (CI) waste feedstocks, rather than feedstocks produced by U.S. farmers, to meet state low carbon fuel standard programs and provide sustainable aviation fuel (SAF). From January 1, 2023 – June 30, 2024, the United States imported 7.9 billion pounds of used cooking oil (UCO) and tallow, which is equivilent to the soybean oil crushed from over 650 million bushels of soybeans.

“Making certain that 45Z is limited to domestic feedstocks will ensure that this important tax credit is implemented as intended in support of the American farmer, processor, and the U.S. taxpayer. Failing to do so will only incentivize continued use of foreign feedstocks to the detriment of those produced by American farmers and put the significant investments to expand U.S. crush capacity by 30 percent in doubt,” said NOPA President and CEO Kailee Tkacz Buller. “NOPA thanks this bipartisan group of lawmakers for standing up for domestic biofuels and advocating for a domestic feedstock requirement for 45Z.” 

“U.S. soy farmers are proud to play a role in a clean energy future through the production of biofuels. If given the opportunities, we can lead the way to cutting our country’s greenhouse gas emissions while boosting the U.S. economy and energy independence,” said ASA President Josh Gackle, a North Dakota soybean farmer. “If we want to develop a strong U.S biofuels market, we must invest in U.S. farmers. We commend Reps. Mann and Kaptur on their bipartisan efforts to push for a final 45Z rule that prioritizes domestically-sourced feedstock.”

A recent study commissioned by NOPA and conducted by S&P Global Commodity Insights found that with planned expansions to U.S. oilseed processing capabilities, domestic feedstocks alone can support the production of an additional 1.4 billion gallons of renewable diesel and biodiesel, also known as biomass-based diesel (BBD) by 2030. These sustainably-produced biofuels help reduce greenhouse gas emissions and lower the carbon intensity of transportation fuels in use today.

The House letter follows a recent, similar effort from a bipartisan group of 16 Senators, echoing the call from NOPA, ASA, and other agriculture groups to support a domestic feedstock requirement for 45Z.

Reps. Mark Alford, R-Mo., Kelly Armstrong, R-N.D., Don Bacon, R-Neb., James Baird, R-Ind., Jim Banks, R-Ind., Larry Bucshon, R-Ind., Nikki Budzinski, D-Ill., Eric Burlison, R-Mo., Emanuel Cleaver, D-Mo., James Comer, R-Ky., Angie Craig, D-Minn., Rick Crawford, R-Ark., John Duarte, R-Calif., Ron Estes, R-Kan., Randy Feenstra, R-Iowa, Mike Flood, R-Neb., Sam Graves, R-Mo., Ashley Hinson, R-Iowa, Erin Houchin, R-Ind., David Joyce, R-Ohio, Robin Kelly, D-Ill., Trent Kelly, R-Miss., Darin LaHood, R-Ill., Jake LaTurner, R-Kan., Max Miller, R-Ohio, Mariannette Miller-Meeks, R-Iowa, Marcus Molinaro, R-N.Y., Frank Mrvan, D-Ind., Zach Nunn, R-Iowa, Greg Pence, R-Ind., Mark Pocan, D-Wis., Harold Rogers, R-Ky., Austin Scott, R-Ga., David Scott, D-Ga., Adrian Smith, R-Neb., Eric Sorenson, D-Ill., David Valadao, R-Calif., Ann Wagner, R-Mo., and Rudy Yakym, R-Ind., joined Mann and Kaptur on the letter to Yellen.

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Organized in 1930, the National Oilseed Processors Association (NOPA) represents the U.S. soybean, canola, flaxseed, safflower seed, and sunflower seed-crushing industries. NOPA’s membership is engaged in the processing of oilseeds for meal and oil that are utilized in the manufacturing of food, feed, renewable fuels, and industrial products. NOPA’s 16 member companies operate five softseed and 62 solvent extraction plants across 21 states, crushing approximately 95% of all soybeans processed in the United States, the equivalent to more than 2 billion bushels annually. More information at www.NOPA.org