Canada’s canola and canola processing industries have been keeping a close eye on how the United States under President Joe Biden will address biofuel feedstocks through the Inflation Reduction Act; however, Reuters reports that Biden may leave office without finalizing the tax credit guidelines included in section 45Z.
Reuters reported Tuesday that the current U.S. administration will not finalize the clean fuel production guidelines before Biden leaves office in late January. This creates significant uncertainty for U.S. ethanol, biodiesel, and sustainable aviation fuel producers who are waiting to find out how production credits will be doled out under new regulations.
Under the proposed rule, Canadian canola may be challenged to compete in a U.S. market.
While feedstock point-of-origin rules may have deterred Canadian canola imports, Trump’s proposed 25 per cent across the board tariff on all imports may make the issue a moot point.
President-elect Donald Trump made it clear during his campaign that his administration would take a different approach on energy, and support the oil and gas industry.
Considering the uncertainty, the U.S. biofuel industry is now pushing lawmakers to extend existing blender tax credits that are set to expire at the end of 2024, Reuters reports.
Related: Trump threatens 25 per cent tariffs on all products from Canada and Mexico
