Clean Fuels Alliance sends letter to Treasury Secretary urging Clean Fuels Production Credit guidance

In Washington, Clean Fuels Alliance America sent a letter to Treasury Secretary Janet Yellen last week, urging the agency to issue guidance, including safe harbors, to the §45Z Clean Fuels Production Credit by September 1. The new producer credit becomes available on January 1, 2025, as the existing blender credit expires. Clean Fuels’ letter emphasizes the difficulties that farmers, producers, and fuel marketers are facing in making the transition without guidance on the rules.

Clean Fuels is requesting Treasury issue safe harbor provisions allowing taxpayers to rely on existing carbon life-cycle assessments – from the most recent R&D GREET model, or the federal RFS, or California’s LCFS – to calculate the §45Z credit until a final rule is in effect. Clean Fuels also asks for clarity on multiple issues, including climate smart ag practices and clean fuels used in home heating.