A bipartisan coalition of House lawmakers is urging the Treasury Department to move quickly in finalizing clean fuel production rules, pressing the agency to resolve outstanding issues tied to the GOP tax law enacted in July that directly affect the biofuels industry.
The letter — led by Rep. Tracey Mann (R-Kan.) and endorsed by more than two dozen bipartisan members — calls on Treasury Secretary Scott Bessent to complete implementation guidance for the Section 45Z clean fuel production tax credit, which prioritizes North American feedstocks.
“This lack of clarity has left capital stranded, stalling investments that are essential for fueling American jobs and strengthening our domestic energy sector,” the lawmakers wrote in the letter submitted to Bessent earlier this week.
Members of Congress stressed that producers need clear, timely rules outlining how the credit can be claimed, verified and monetized, noting that uncertainty has halted or delayed significant biofuel investments.
The 45Z credit, which incentivizes the production of lower-emission fuels, was originally established in Democrats’ 2022 tax-and-climate law, replacing earlier tax incentives for sustainable aviation fuel and biodiesel.
Republicans revised the credit in their summer 2025 tax package, extending it through 2029 and addressing concerns that the earlier version favored foreign feedstocks by restricting eligibility to feedstocks sourced within North America.
Treasury has not issued a public response to the lawmakers’ letter.
Because the July GOP tax law eliminated or weakened incentives for wind and solar energy production, many analysts expect the updated biofuels credit — and the broader market surrounding it — to expand in the coming years.
The changes to 45Z have intensified lobbying activity across the energy and agricultural landscape, according to federal disclosures. Organizations representing corn and soybean growers, airlines, fuel producers, and truck stop operators spent millions prior to the July legislation and have continued pressing their priorities since its passage.
Different segments of the industry are focusing on different aspects of the regulatory process. A central point of attention is how agencies — including Treasury — will treat carbon intensity scoring requirements, which will influence the value of the credit.
“At a time when farmers are struggling to find foreign market access for commodities, recurring domestic demand from the biofuels industry is more important than ever,” the lawmakers wrote. “The effective, timely, and scientific implementation of 45Z is essential to realize the credit’s full potential.”
Adapted from an article originally shared by Bloomberg. Image Credit: Pixabay – benscripps
Notice: The Michigan Advanced Biofuels Coalition (MiABC) does not lobby or influence policy in any way. The policy interests of Michigan soybean farmers and biodiesel producers are supported by the Michigan Soybean Association and Clean Fuels Alliance America, respectively. This post is shared for educational purposes only.