NATSO and SIGMA Push Treasury for Transparency in Biofuel Tax Credit Rule
Event summary
- NATSO and SIGMA testified before the U.S. Treasury Department on May 27, 2026, urging transparency in the 'Section 45Z' Clean Fuel Production Tax Credit.
- The groups called for producers to disclose precise per-gallon credit values to purchasers to ensure savings are passed to consumers.
- A GlobalData report found only 20% of the '45Z' credit value currently flows to blenders and consumers, compared to 50-70% under the previous Biodiesel Tax Credit.
- NATSO and SIGMA praised Congress for restoring technology neutrality to '45Z' through the One Big Beautiful Bill Act.
The big picture
The push for transparency in the '45Z' tax credit comes amid record-high diesel prices and volatility in global energy markets. NATSO and SIGMA argue that the current lack of transparency in the credit's structure prevents fuel retailers from passing savings to consumers, a dynamic that could influence broader biofuel market participation and consumer pricing strategies. The outcome of this regulatory process will shape the effectiveness of government incentives in lowering fuel costs.
What we're watching
- Regulatory Implementation
- Whether the Treasury Department will adopt NATSO and SIGMA's transparency recommendations in the final '45Z' rule.
- Market Impact
- How the final rule will affect the flow of tax credit value to consumers and farmers.
- Legislative Action
- Whether Congress will reinstate the Biodiesel Blenders' Tax Credit, which provided more straightforward savings mechanisms.