ALEXANDRIA, Va., Aug. 6, 2024
/PRNewswire/ -- NATSO, representing travel centers and truck stops,
SIGMA: America's Leading Fuel Marketers, the National Association
of Convenience Stores (NACS), American Trucking Associations and
Truckload Carriers Association urged the U.S. Treasury Department
and the Internal Revenue Service (IRS) to publish comprehensive
guidance for the new 45Z Clean Fuel Production Credit that
minimizes inflationary pressure on retail fuel prices.
In a joint letter to the U.S. Department of Treasury and the
Internal Revenue Service, the trade associations said impending
guidance will have "immediate, direct, and traceable impacts" on
the supply and price of gasoline and diesel. Fuel purchasers must
be able to determine the precise tax credit value associated with
each gallon of biofuel to ensure consumers access the value of the
credit.
"If designed improperly, the implementing guidance could inject
massive disruption and confusion into already-volatile motor fuel
and biofuels markets," the trade associations wrote. "The
consequence will undoubtedly be higher prices at the pump for
consumers."
The associations urged Treasury to publish guidance that
includes:
- Disclosure of precise credit values for fuel originating from
different production facilities to ensure price transparency,
enabling consumers to benefit from the credit in the form of lower
prices at the pump;
- Additional stringency for the model that calculates the
lifecycle emissions of aviation fuels to ensure that implementation
of the Clean Fuel Production Tax Credit is consistent with the
Inflation Reduction Act;
- Strategies that ensure the 45Z credit does not shut off
renewable diesel and biodiesel imports which help to lower fuel
prices and emissions; and
- Policies that limit the migration of feedstock away from
renewable diesel and biodiesel toward sustainable aviation fuel to
ensure that feedstocks continue to gravitate toward the most
environmentally compelling end-use.
The new Clean Fuel Production Tax Credit differentiates between
what historically have been fungible commodities.
Today, every gallon of biodiesel and renewable diesel receives the
same tax treatment. If implemented improperly, the Clean Fuel
Production Credit threatens to inject disruption across the fuel
chain.
If upcoming guidance does not account for what today are routine
commercial decisions when buying and blending biofuels, it will
become increasingly difficult to avoid inflationary pressure on
retail fuel prices. Treasury's implementing regulations for the 45Z
Credit must also include additional stringency requirements for the
model that calculates the lifecycle emissions of aviation fuels
relative to the model that calculates the emissions of non-aviation
fuels.
NATSO, SIGMA, NACS, ATA and TCA look forward to working with the
Treasury Department as it implements this new clean fuel
policy.
About NATSO, SIGMA
NATSO is the trade association of America's travel
plaza and truck stop industry. Founded in 1960, NATSO represents
the industry on legislative and regulatory matters; serves as the
official source of information on the diverse travel plaza and
truck stop industry; provides education to its members; conducts an
annual convention and trade show; and supports efforts to generally
improve the business climate in which its members operate. Contact:
Tiffany Wlazlowski Neuman, Vice
President, Public Affairs. 202-365-9459
SIGMA is the national trade association representing
the most successful, progressive, and innovative fuel marketers and
chain retailers in the United
States and Canada. Founded
in 1958 as the Society of Independent Gasoline Marketers of America
(SIGMA), SIGMA has become a fixture in the motor fuel marketing
industry. Representing a diverse membership of approximately 250
independent chain retailers and marketers of motor fuel, the
association serves to further the interests of both the branded and
unbranded segment of the industry while providing information and
services to members. For more information visit SIGMA.org.
Contact: Tiffany Wlazlowski
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SOURCE NATSO, Inc.