Biodiesel coalition praise Senate Finance Committee for changes to 45Z credit proposals

In Washington, biodiesel stakeholders praised members of the Senate Finance Committee for their work to make improvements to the Clean Fuels Production Credit (Section 45Z). The coalition includes Sustainable Advanced Biofuel Refiners (SABR); NATSO, representing travel centers and truck stops; American Trucking Associations (ATA); Illinois Soybean Growers; National Energy & Fuels Institute (NEFI); SIGMA: America’s Leading Fuel Marketers; and the National Association of Convenience Stores (NACS). Equalizing the value of the credit between over-the-road biomass-based diesel and sustainable aviation fuel (SAF) was an important policy improvement. Creating SAF parity would be an important step to leveling the playing field and mitigating the ongoing problem of SAF displacing gallons of over-the-road biomass-based diesel rather than gallons of petroleum. Another important policy improvement from the House version was the extension of transferability of the credit to all seven years of the program. Without transferability, most biomass-based diesel producers would not have access to the credit at all. Finally, biomass-based diesel producers are glad to see that the removal of Indirect Land Use Change (ILUC) stayed in the Senate version. After 20 years of predictions of ILUC from biofuels, the modeled ILUC results were never observed and certainly not scientifically agreed upon.