WASHINGTON, D.C. – Today, Growth Energy CEO Emily Skor participated in a virtual roundtable with the U.S. Department of the Treasury on implementation of the Inflation Reduction Act (IRA). The agency invited participants to provide perspective as it seeks to maximize the impact of the IRA’s climate and clean energy provisions.
“We’re grateful to be able to participate in this roundtable, and glad to see Treasury recognize how important the biofuels industry will be to securing a clean energy future and ensuring that the IRA realizes its full potential,” said Skor. “Right now, the biofuels industry is already lowering carbon emissions, reducing our reliance on foreign oil, saving drivers money at the pump, and creating new American jobs. A smartly implemented IRA will allow ethanol producers to do even more and accelerate the nation’s progress toward a net-zero environment.”
In her remarks at the roundtable Skor urged Treasury to:
- Rely on the best available science to calculate greenhouse gas emissions (GHG) through complete and thorough lifecycle analysis. Accurate, complete, and consistent lifecycle analysis is central to the effectiveness of the IRA, particularly for sections 45Z (the Clean Fuel Production Credit) and 40B (the Sustainable Air Fuel (SAF) Credit);
- Allow producers to use Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model to determine lifecycle GHG emissions in SAF; and
- Provide flexibility to producers in how they elect to use the credits outlined in Sections 45Z and 40B.
Background
President Biden signed the Inflation Reduction Act into law on August 16, 2022. The IRA represents our nation’s most significant investment in clean energy and biofuels since the expansion of Renewable Fuel Standard (RFS) in 2007. Included in the IRA are several key priorities for the biofuels industry, including:
- Section 45Q tax credit for carbon capture (Section 13104 of the IRA)
- Section 45Z clean fuel production tax credit (CFPC) (Section 13704)
- Section 40B sustainable aviation fuel (SAF) tax credit (Section 13203)
- $500 million in biofuels infrastructure (Section 22003)
Growth Energy continues to engage with federal agencies, including the Treasury, on the implementation of the law. Just last week, Growth Energy sent a letter to Treasury calling on regulators to ensure that policies reflect the most updated and accurate science-based lifecycle carbon assessment methods, specifically those in the U.S. Department of Energy’s GREET model.