Associations push for clear guidance on Clean Fuel Production Credit

In Virginia, major industry groups, including NATSO, SIGMA, the National Association of Convenience Stores, American Trucking Associations, and Truckload Carriers Association, have urged the U.S. Treasury Department and the IRS to provide comprehensive guidance for the new 45Z Clean Fuel Production Credit. This request aims to minimize inflationary pressures on fuel prices.

In a joint letter, these associations emphasized that clear and precise guidance is essential to prevent disruption in the motor fuel and biofuels markets. They highlighted that fuel purchasers need accurate tax credit values for each gallon of biofuel to ensure that consumers benefit from the credit.

“If designed improperly, the guidance could inject massive disruption and confusion into already-volatile motor fuel and biofuels markets,” the associations cautioned, noting that higher prices at the pump could result.

The associations called for transparency in credit values for different fuel production facilities and stringent models to calculate lifecycle emissions of aviation fuels. They also emphasized the importance of policies that prevent feedstock diversion from renewable diesel and biodiesel.