WASHINGTON, DC, US — US soybean associations voiced support for guidance that would restrict a clean fuel tax credit to renewable fuels made with domestically sourced feedstocks.

The National Oilseed Processors Association (NOPA) and the American Soybean Association (ASA) applauded the House of Representatives for urging the Treasury Department to include the guidance for the Section 45Z Clean Fuel Production Tax Credit.

The Department has until Jan. 1, 2025, to issue guidance for 45Z. The representatives also asked for the guidance to be expedited.

“If drafted and implemented per congressional intent, 45Z will support American energy independence by incentivizing the production of biofuels made with domestically produced feedstocks, while continuing to support global renewable fuel production made from a wide array of feedstocks,” the lawmakers wrote. “While the use of foreign feedstocks can play an important role in producing domestically manufactured ethanol, biodiesel, renewable diesel, and sustainable aviation fuel, Treasury must be clear that 45Z only applies to biofuels produced from domestic feedstocks by domestic fuel producers.”

Not limiting 45Z to domestic feedstocks would incentivize continued use of foreign feedstocks to the detriment of those produced by American farmers, said Kailee Tkacz Buller, president and chief executive officer of NOPA.

“If given the opportunities, we can lead the way to cutting our country’s greenhouse gas emissions while boosting the US economy and energy independence,” said ASA President Josh Gackle, a North Dakota soybean farmer. “If we want to develop a strong US biofuels market, we must invest in US farmers.”