While the current U.S. administration has voiced support for biofuels, key policy pieces that underpin industry growth, such as guidance on E15 inclusion and Section 45Z tax credits, remain unresolved. That’s a problem for ethanol producers and corn growers alike.
In this interview from Washington, D.C., Shaun Haney speaks with Geoff Cooper, CEO of the Renewable Fuels Association (RFA), about the state of U.S. biofuel policy and the missed opportunities to provide long-term certainty in these first 100 days of Trump’s administration.
Cooper notes the administration has issued emergency waivers to allow E15 sales through summer, but that’s “sort of a band-aid fix.” What the industry really needs is permanent legislative change. “There’s plenty of support… both chambers are wanting to get this done. It’s just there’s been a lack of legislative vehicles moving,” he says.
Cooper says the real impact of expanding to nationwide E15 is significant: up to 1.8 to 2 billion more bushels of corn in demand and an additional 5 to 6 billion gallons of ethanol—although full adoption wouldn’t happen overnight.
As for 45Z, the clean fuel production credit introduced under the Biden administration’s Inflation Reduction Act, Cooper describes the situation as murky. “We don’t have a proposed rule. We certainly don’t have a final rule,” he says, adding that the program is likely to be “rebranded” or altered if Congressional reforms move ahead. Still, Cooper is optimistic that tax support for low-carbon fuels will remain, even if the mechanisms change.
Related: Canola-based biofuel faces challenge in 45Z
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