Governors' Biofuels Coalition

The biofuel industry is officially on the lookout for Trump administration guidance on a tax credit overhauling longtime policy for crop-based fuels. The Treasury Department sent its proposal to the White House this week for review. Public release of guidance for the Clean Fuel Production Tax Credit is widely expected to come before the end of the year. The 45Z credit replaced a $1-a-gallon blending credit with one valued based on the carbon footprint of a fuel’s production.

What’s at issue: One question is whether Renewable Energy Certificates (RECs) will be preserved. RECs allow producers to offset electricity emissions with wind, solar or hydropower. A recent rumor that they were removed caused an uproar, said Danielle Anderson, senior government policy and advocacy manager at Christianson CPAs and Consultants. “We’re seeing ethanol plants being able to offset 100% of their electricity emissions,” Anderson said. “So, companies that weren’t in the money suddenly can be.”

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