WASHINGTON, D.C.— Growth Energy today praised a bipartisan letter from 52 House and Senate lawmakers, led by Senator Joni Ernst (R-Iowa), calling for “effective, timely, and scientific implementation” of the Section 45Z Clean Fuel Production Credit by the U.S. Department of the Treasury. A clear market signal, they write, will unlock critical investments and unleash the “innovation and ingenuity of America’s farmers and biofuel producers.”
“America’s biofuel producers and our farm partners stand ready to fast-track new investments in low-carbon fuels, but we need regulatory certainty to move forward,” said Growth Energy CEO Emily Skor. “We applaud Senator Ernst and all our rural champions in Congress for reminding the Treasury that swift implementation of 45Z based on the best available science is the key to unlocking exponential growth in rural America through the enhanced production of biofuels. We urge the administration to maximize the impact of the 45Z credit by signaling to the market that Treasury intends to follow Congress’ intent by recognizing and rewarding the full suite of carbon-smart practices happening at the plant and on the farm.”
Passed as part of the Inflation Reduction Act (IRA), the 45Z tax credit is intended to incentivize production of low-carbon fuels in transportation on the ground and in the air. If implemented properly, Growth Energy’s own research demonstrates that the credit would add $21.2 billion to the U.S. economy, generate nearly $13.4 billion in household income, support more than 192,000 jobs across all sectors of the national economy, and provide farmers with a 10 percent premium price on low carbon corn used at an ethanol plant.