Lawmakers push Treasury to prioritize domestic biofuel production

In Washington D.C., U.S. Representatives Tracey Mann and Marcy Kaptur, along with 39 colleagues, urged the U.S. Department of Treasury to prioritize domestic fuel producers in the implementation of the Clean Fuel Production Credit. The bipartisan letter calls for restricting the credit to biofuels made from U.S. feedstocks ahead of the January 1, 2025 deadline.

The lawmakers argue that limiting the credit to domestic producers will strengthen American energy independence and protect U.S. farmers and processors from being undercut by foreign feedstocks. The 45Z credit is designed to promote renewable fuel production while reducing reliance on fossil fuels.

Several industry groups, including the National Farmers Union and the American Soybean Association, support the letter, warning that foreign imports like used cooking oil and tallow could threaten U.S. biofuel investments.

The lawmakers requested a response from Treasury by September 27, 2024, to ensure timely implementation and protect U.S. biofuel markets. The letter emphasizes the importance of supporting domestic agriculture and energy producers in the transition to a low-carbon economy.