Biofuel Producers Stuck in Neutral Without Finalized Tax Credit Guidance

Red Trail Energy near Richardton, is being acquired by Gevo, a company that is developing sustainable jet fuel. (Amy Dalrymple/North Dakota Monitor)

(North Dakota Monitor) – As the Biden administration enters its final days in the White House, biofuel industry leaders hoped for finalized rules on a tax credit for sustainable aviation fuel, but what they got was a “notice of intent to propose regulations” from the U.S. Department of the Treasury.

Iowa Renewable Fuels Association Director Monte Shaw said the notice leaves producers “stuck in neutral” as the guidelines could and likely will be changed once the Trump administration takes office.

“What’s in it is somewhat meaningless, because in 10 days, what the Biden administration intended to do doesn’t matter anymore,” Shaw said in a call with Iowa Capital Dispatch. “The Trump administration will come in and take a fresh look at this, and that’s true of any change in administration at any time in our country’s history.”

According to the Treasury, the guidance issued Friday provided clarity on eligibility for the credit and how lifecycle greenhouse gas emissions will be determined.

“This guidance will help put America on the cutting-edge of future innovation in aviation and renewable fuel while also lowering transportation costs for consumers,” Deputy Secretary of the Treasury Wally Adeyemo said in a statement. 

The press release from the Treasury said the department intends to release its Greenhouse gases, Regulated Emissions, and Energy use in Technologies, or GREET, model for determining 45z emissions rates “in the coming days.”