NACS Urges Transparency in Proposed Rule for Biofuel Credits

NACS, along with NATSO, Representing America’s Travel Centers and Truck Stops; and SIGMA: America’s Leading Fuel Marketers, submitted formal regulatory comments in a letter this week to Treasury Secretary Scott Bessent, regarding the Section 45Z clean fuel producers’ tax credit enacted under the Inflation Reduction Act of 2022 and recently amended by the One, Big, Beautiful Bill Act of 2025.

In its comments, NACS shared concerns that the new 45Z credit is not as transparent as the previous Section 40A biodiesel blenders’ credit, meaning it is less likely for consumers to benefit. In the letter, NACS asked the Treasury to address the issue in its final 45Z regulations.

NACS and its cosigners made the following statement:

“The real-world implications on American energy supplies and the price that consumers pay at the pump should serve as the regulatory North Star of biofuel policy. Gasoline prices are one of the most visible, tangible ways consumers experience inflation in the U.S. economy. Higher diesel costs also raise the price of food, medicine and everyday household goods transported by truck as motor carriers experience higher operating costs.

The ‘45Z’ Credit is not alleviating these affordability challenges for American consumers and businesses. It has not helped American consumers by lowering fuel prices and it has not helped American farmers by increasing sales of corn or soybeans used to produce renewable fuels. The truth is, ‘45Z’ has failed to help American farmers and American consumers of fuel. Treasury can begin to address these failures by finalizing rules that require transparent disclosure of credit values throughout the fuel supply chain, enabling the economic benefit of the ‘45Z’ Credit to flow to consumers at the pump rather than disappearing in the margins of fuel producers.

Congress has a distinct opportunity to rectify the volatility and chaos within the biofuel markets and provide relief for Americans by quickly reinstating the Biodiesel Blenders’ Tax Credit. The Biodiesel Tax Credit is a proven approach that can bolster soybean demand and help stabilize retail diesel prices. This would actually benefit American farmers and consumers.”

NACS has previously reiterated to Congress that the lapsed 40A biodiesel blenders credit, if reinstated, can work quickly and efficiently to control rising diesel prices across the supply chain, which effects the cost of virtually all consumer goods.

Biodiesel and renewable diesel are advanced biofuels that are generally produced from feedstock such as soybean oil, recycled cooking oil or other animal fats. The U.S. Environmental Protection Agency (EPA) defines the two fuels as renewable fuels that emit at least 50% less lifecycle greenhouse gas emissions than fossil fuel alternatives. In many cases, biodiesel and renewable diesel reduce emissions by more than 70%.

In late March, the EPA announced new Renewable Fuel Standard (RFS) volume obligations—the highest ever—for compliance years 2026 and 2027. NACS noted at the time that strong volume obligations “send an important market signal, but they work best when paired with consumer-friendly fuel tax policy” like the 40A credit.