Today, Clean Fuels Alliance America sent a letter to Treasury Secretary Janet Yellen, urging the agency to issue guidance, including safe harbors, to the §45Z Clean Fuels Production Credit by Sept. 1. The new producer credit becomes available on Jan. 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.“We appreciate that Treasury understands the importance of having guidance for the section 45Z Clean Fuel Production credit well in advance of January 1, 2025, so farmers, producers and fuel customers have the certainty to continue to produce, sell, and use low-carbon biomass-based diesel,” Clean Fuels writes. “U.S. biodiesel, renewable diesel, and sustainable aviation fuel (SAF) producers are facing difficulties finalizing feedstock contracts, securing capital flows, and meeting project deadlines without knowing the value of the credit. The need for policy certainty is urgent.”Clean Fuels is requesting Treasury issue safe harbor provisions allowing taxpayers to rely on existing carbon life-cycle assessments – from the most recent R&amp;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.Kurt Kovarik, Clean Fuels Vice President of Federal Affairs, added, “Farmers, fuel producers, and marketers need to know the new tax policy rules now to successfully navigate the transition at the start of the year. The industry must negotiate feedstock contracts and fuel offtake agreements at least a quarter year in advance. By September, the entire industry could come to a standstill without the ability to reliably calculate the tax credit value. Ongoing delays could undermine production of biodiesel, renewable diesel, and sustainable aviation fuel, sacrificing jobs, economic opportunities for farmers, and near-term carbon reductions.”The&nbsp;<a href="https://cleanfuels.org/wp-content/uploads/Clean-Fuels-45Z-Letter-to-Yellen_Aug2024.pdf">letter is available for download</a>.&nbsp;

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Clean Fuels Alliance America on Aug. 28 sent a letter to Treasury Secretary Janet Yellen, urging the agency to issue guidance, including safe harbors, to the 45Z Clean Fuels Production Credit by Sept. 1. 

Clean Fuels urges Treasury to immediately issue 45Z guidance and safe harbors

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