ASA and NOPA Welcome 45Z Guidance That Addresses Impacts of Surging Imports

American Soybean Association and National Oilseed Processors Association have consistently called for 45Z to address record UCO imports and benefit U.S. producers.

The American Soybean Association and National Oilseed Processors Association appreciate the U.S. Treasury Department's notice of intentto propose regulation on the Clean Fuel Production Credit (45Z), which provides interim guidance for taxpayers to claim credits while developing a roadmap to spur additional investment in the domestic biofuel industry.

"ASA thanks the Biden administration and Treasury for listening to our concerns and developing guidance that supports U.S. farmers while strengthening our domestic biofuels industry," said ASA President Caleb Ragland, a soy farmer from Kentucky. "The guidance released today is an investment in U.S. farmers, who stand ready to feed and fuel the world-while also fueling the U.S. economy. We look forward to working with Congress and the incoming Trump administration to build on this progress and develop final guidance that supports rural America."

With imported waste feedstocks for biofuel production surging in recent years, ASA and NOPA have been sounding the alarm for the need to ensure the validity of imports while empowering U.S. farmers with access to growing domestic markets for soybean oil. The notice published today by the Treasury Department addresses these concerns by ensuring imported used cooking oil remains ineligible for the 45Z credit through the GREET model until such time that Treasury can promulgate substantiation regulations for imports.

NOPA has likewise expressed appreciation to Treasury for providing necessary guidance for America's crushers and farmers and bolstering American energy independence. The organization notes the dramatic rise in UCO imports has posed a risk to American agriculture, but by restricting import eligibility, the 45Z tax credit will benefit American farmers and processors as Congress intended. NOPA remains committed to working with the incoming Congress and Trump administration to bring full parity for soybean farmers and find long-term solutions to fully unleash the country's energy independence, which American farmers are poised and able to provide.

Through September 2024, the United States has imported 5.4 billion pounds of UCO and tallow, already far surpassing record import levels from 2023.

Treasury's intent to propose regulation on the Clean Fuel Production Credit provides taxpayers with the ability to claim credits while the rulemaking process is underway. Additional publications related to biofuel tax credits are anticipated from the U.S. Departments of Agriculture and Energy in the coming days.

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The American Soybean Association (ASA) represents U.S. soybean farmers on domestic and international policy issues important to the soybean industry. ASA has 26 affiliated state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers. More information at soygrowers.com.

Organized in 1930, the National Oilseed Processors Association (NOPA) represents the U.S. soybean, canola, flaxseed, safflower seed, and sunflower seed-crushing industries. NOPA's membership is engaged in the processing of oilseeds for meal and oil that are utilized in the manufacturing of food, feed, renewable fuels, and industrial products. NOPA's 17 member companies operate over 70 softseed and soybean solvent extraction plants across 21 states, crushing over 97% of all soybeans processed in the United States, the equivalent to more than 2 billion bushels annually. More information at www.NOPA.org.