Tax and Clean Energy Policy

Twenty-five trade associations representing producers, feedstock providers, blenders, consumers, and retailers of low-carbon, renewable fuels sent a letter to Treasury Secretary Janet Yellen, urging Treasury to finalize and publish guidance for the §45 Clean Fuels Production Credit as soon as possible.

Clean Fuels, ASA, NOPA and U.S. Canola urge using the most recent version of the GREET model as the “similar methodology” option for determining SAF tax credit eligibility.

SAF derived from co-processing is ineligible for the tax incentive. Treasury should adopt GREET as the similar methodology.

Treasury should adopt the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies
(GREET) model as the secondary methodology for calculating tax credits for sustainable aviation fuel (SAF) produced

Treasury should use GREET -- a U.S. lifecycle carbon emissions accounting model -- to determine tax credits for U.S. produced fuels.

It is critical that Treasury and IRS implement a verified, current, and science-based emissions rate methodology to set tax credit values.

In 2021, while petroleum production fell, the biodiesel and renewable diesel industry grew and added jobs. Stable tax incentives were a key reason.

The biodiesel tax incentive supports thousands of rural jobs and environmental benefits worth $4 billion in 2020.

The industry's federal policy priorities include stable tax incentives, funding for infrastructure, and optimizing the RFS to achieve carbon reductions.