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45Z uncertainty hangs over biofuels industry
The CEO of Clean Fuels Alliance America says around half of the country’s biodiesel production has been offline for close to a month.
Donnell Rehagen says it’s primarily a result of uncertainty around the 45Z tax credit.
“Because they just don’t know how to buy the feedstock.” He says, “They don’t know how to price the finished fuel. Customers are the same way. They don’t know what the value of that tax credit is going to be. We need to have that guidance; we need to have it firmed up. We need to have it in the form of a final rule, and we need to have that very soon.”
He tells Brownfield the Biden administration started the process, but there’s still work to be done.
“There needs to be a formal rulemaking process initiated and that takes a while for that to happen.” He says, “We need the Trump administration to sit down with us and listen. To hear what our industry needs as far as a clarity. Nobody in that supply chain knows what their product is worth at this moment in time.”
Rehagen says he expects biofuel production to remain low until the industry has an official rule in place from the Trump administration.
AUDIO: Donnell Rehagen – Clean Fuels Alliance America
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