Advanced Biofuels Association calls for immediate 45Z guidance, extension of blenders credits
- Advanced Biofuels Association
- Dec 4, 2024
- 1 min read
With less than a month remaining before the 45Z clean fuel production tax credit is supposed to take effect, Michael McAdams, president of the Advanced Biofuels Association (ABFA), is urging the Biden administration to immediately issue the guidance necessary for the industry to claim the credit.
“In addition,” McAdams said, “we call on Congress to extend existing blender credits to mitigate the uncertainty caused by these significant delays.”
According to McAdams, an extension of these longstanding important incentives, such as the $1-per-gallon biodiesel and renewable diesel blenders credit, is “critical to ensuring a smooth transition, enabling long-term investments and maximizing the credit’s impact.”
Tax credits are only effective when they are consistent, timely and well-communicated, McAdams said.
“The prolonged lack of clarity has stalled vital investments and disrupted planning—hindering the ability to achieve national energy goals like producing 3 billion gallons of sustainable aviation fuel (SAF) by 2030,” he said.
“ABFA’s members are ready to lead in delivering sustainable-energy solutions, but federal action is urgently needed,” McAdams added. “Congress and the administration must extend blender credits and provide the immediate guidance required to unlock the 45Z credit for 2025.”
Founded in 2007, ABFA represents more than 40 companies from the U.S. and around the world that are stakeholders in the biofuels industry.
ABFA represents all sustainable aviation fuel (SAF) currently in production in the United States, adding to its membership’s worldwide annual production exceeding 5 billion gallons of renewable diesel, biodiesel, renewable gasoline and renewable heating oil.
