On Tuesday, July 9, 2024, U.S. Treasury Secretary Yellen testified before the U.S. House Financial Services Committee in a hearing titled, “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.” As the biofuels industry awaits guidance from the U.S. Treasury on 45Z, the Clean Fuels Production Tax Credit, two members of the Financial Services Committee took this opportunity to ask Secretary Yellen about the timing of the guidance and the substance of the credit to ensure it works for American agriculture. Take a look:
Rep. Zach Nunn (R-Iowa)
Rep. Nunn: In that vein of setting deadlines, one of the things I would ask Treasury is, will Treasury be able to meet their November 1st, 2024 rulemaking deadline on 45Z, the clean fuel production credit?
Secretary Janet Yellen: Um, they’re working. This is the successor to the sustainable fuels…
Rep. Nunn: That’s correct.
Secretary Yellen: So that’s something that Treasury is working on. I can’t give you an exact – there are many…
Rep. Nunn: I hope you meet your deadline, Madame Secretary, because you’ve laid out a very strict $500 a day deadline for small businesses in Iowa that work largely in renewable fuels. I hope that Treasury can meet its own deadline that you laid out of November 1st.
Rep. Mike Flood (R-Neb.)
Before I begin, I want to make a brief statement on something that is—admittedly, not within the scope of this particular hearing—but is very important to my district and agriculture producers across the country. With the 45Z Clean Fuel Production credit going into effect in less than five months, Nebraska’s agriculture and energy producers need full and accurate guidance promptly.
I was disappointed to see Treasury release guidance in April for the 40B Sustainable Aviation Fuel Credit that rejected the best available scientific data and tied the hands of our nation’s ag producers with an unworkable, one-size-fits-all, limitation.
Nebraska’s farmers don’t need the federal government to come in at the eleventh hour and dictate which practices are acceptable and not acceptable. I will continue to advocate for greater flexibility that fully recognizes the role Nebraska’s producers play in the future of transportation fuels and for an all-of-the-above energy policy that puts our farmers first. I plan to submit some questions, madame secretary, for the record on this issue and would appreciate a quick response.
We are grateful to our champions for continuing to hold Treasury to a timely and accurate 45Z credit.