US Treasury 45Z Notice of Intent Appears to be Too Little, Too Late for Iowa Farmers, Biofuel Producers

Treasury Announcement Today Leaves Biofuels Producers Stuck in Neutral

Contact: Emma Koehler
515-252-6249

JOHNSTON, IA - Today the U.S. Department of Treasury released a notice of intent to propose guidance regarding the 45Z Clean Fuel Production Credit. For months, Iowa Renewable Fuels Association (IRFA) has relentlessly pushed for immediate action to establish safe harbor guidance until a complete rule can be finalized, as the lack of rules is directly impacting the biodiesel supply chain today. IRFA Executive Director Monte Shaw made the following statement:

"Today's announcement by the Treasury is a story of too little, too late. This is not a final rule. This is not a safe harbor. It isn't even a proposed rule. Putting out a notice of 'intent' ten days before you leave office is nothing but punting the rule down the road.

"IRFA will work with the incoming Trump Administration and the Iowa delegation to get rules in place as quickly as possible. 45Z is the law of the land, yet biofuels producers, farmers, and consumers are not able to utilize the credit.

"The lack of transparency and certainly has left many biodiesel production facilities running at a reduced rate or not at all. The supply chain needs to know the value of the credits to resume functioning normally. If America is to achieve energy dominance we can't leave biofuels producers and American farmers stuck in neutral."

The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org .

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