Ethanol industry still waiting on tax guidance
The CEO of the Renewable Fuels Association says the U.S. Treasury Department still hasn’t issued additional guidance on federal tax credits from the Inflation Reduction Act.
Geoff Cooper tells Brownfield he’s expecting an announcement anytime.
“By the end of the year, we should see something definitive from the U.S. Department of Treasury.”
Cooper says if the department allows the Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) model to be used to measure the carbon footprint of Sustainable Aviation Fuels, it would benefit the U.S. ethanol industry.
“All projections suggest by 2030 we’ll be using around 28 to 30 billion gallons of jet fuel in this country. In order to be a sustainable aviation fuel, half of that needs to be renewable. We’re talking about 14 to 15 billion gallons of renewable fuel that’s going to be needed.”
U.S. ethanol producers and airline companies sent a letter to Treasury Secretary Janet Yellen on Wednesday asking her to formally allow the GREET model to be used to estimate the carbon footprint for SAF.