By Jamie Martin
The American Soybean Association (ASA) and the National Oilseed Processors Association (NOPA) have expressed their gratitude toward the U.S. Treasury Department for its notice of intent to propose regulation on the Clean Fuel Production Credit (45Z).
This proposed regulation provides taxpayers with interim guidance on claiming credits as the government works to foster further investment in the domestic biofuel industry.
“ASA thanks the Biden administration and Treasury for listening to our concerns and developing guidance that supports U.S. farmers while strengthening our domestic biofuels industry,” said ASA President Caleb Ragland, a soy farmer from Kentucky.
“The guidance released today is an investment in U.S. farmers, who stand ready to feed and fuel the world while also fueling the U.S. economy. We look forward to working with Congress and the incoming Trump administration to build on this progress and develop final guidance that supports rural America.”
A growing concern for ASA and NOPA has been the rising imports of waste feedstocks for biofuel production, which has been a challenge to domestic markets for soybean oil.
With imported used cooking oil (UCO) increasing dramatically in recent years, ASA and NOPA have raised alarms about ensuring the validity of these imports.
The Treasury Department’s notice addresses these concerns by ensuring that used cooking oil remains ineligible for the 45Z credit through the GREET model until further regulations are established for imports.
NOPA has also praised the Treasury for offering essential guidance that supports American crushers and farmers, bolstering the country’s energy independence.
The group noted that the surge in UCO imports has posed a significant threat to American agriculture, but limiting import eligibility for the 45Z credit helps U.S. farmers and processors, as intended by Congress.
NOPA remains committed to collaborating with Congress and the incoming administration to bring full parity for soybean farmers and to find long-term solutions to enhance U.S. energy independence.
As of September 2024, the U.S. has already imported 5.4 billion pounds of UCO and tallow, surpassing record levels from 2023.
Treasury's proposal will allow taxpayers to claim credits while the rulemaking process progresses, with further publications related to biofuel tax credits expected from the U.S. Departments of Agriculture and Energy.
Photo Credit: vista-mipan
Categories: National