In a letter to Treasury Secretary Janet Yellen, Brown and colleagues called on the administration to restrict the eligibility of the forthcoming 45Z Clean Fuel Production Credit to renewable biofuels fuels made from feedstocks sourced domestically. The tax credit, which was passed as part of the Inflation Reduction Act, was intended to make America more energy independent and spur the production of biofuels made with American-produced feedstocks – building new markets for American farmers.
The letter comes amidst a surge in imports of Chinese used cooking oil being used to produce biofuels in the US that is displacing the use of domestic feedstocks. The Senators warn that a poorly crafted rule will hurt American farmers, undermine the American biofuel industry’s competitiveness, and undercut American energy independence.
