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The Advanced Biofuels Association (ABFA) applauds the Senate for its passage of the Inflation Reduction Act, which will drive the U.S. to meaningfully reduce greenhouse gas emissions from our nation’s highest emitting sector – transportation. This comprehensive bill offers a suite of meaningful policy directives that will enable the advanced biofuels industry to better reach its fullest potential, including long-term tax policy, new financing and grant resources at DOE, USDA, and DOT, and increased federal resources for EPA to administer the Renewable Fuel Standard. This vote of confidence and real investment from our federal government will have positive ripple effects throughout our industry and across the U.S.’s carbon footprint.
ABFA fought hard for extensions for the biodiesel, renewable diesel, alternative fuel mixture, and second generation tax credits, and commends the Senate for its extensions of these credits through 2024. ABFA will work with Congress and the Treasury Department to gather more clarity as we better understand the new tax credits created by this legislation that will support sustainable aviation fuel and provide an emissions-centric, technology-neutral tax credit for all renewable fuels.
Our low-carbon liquid fuels, which by law must exceed 50 percent emissions reductions, but frequently exceed 80 percent, are vital to propel the US into a cleaner, energy-independent future. We encourage enactment of this historic legislation that will create much needed certainty for the production of the American-made, low-cost, low-carbon fuels of the future.
– Michael McAdams, President of the Advanced Biofuels Association
