Fuel Retailers Urge Congress to Scrap '45Z' Credit, Revive Biodiesel Tax Incentives

Event summary

  • NATSO, SIGMA, and NACS criticize the 'Section 45Z' Clean Fuel Production Credit as overly complex and ineffective.
  • Biodiesel consumption dropped to 960 million gallons in 2025 from over 2 billion gallons in 2024.
  • Renewable Identification Numbers (RINs) for biodiesel fell 22% in 2025 compared to the prior year.
  • Groups advocate for reinstating the Biodiesel Tax Credit to lower fuel prices and support farmers.

The big picture

The pushback against '45Z' reflects broader tensions between regulatory complexity and industry needs for straightforward incentives. The decline in biofuel consumption underscores the economic stakes, with fuel retailers and farmers alike seeking policies that stabilize markets and lower costs. The outcome could reshape U.S. energy policy, particularly as biofuels remain a key component of domestic fuel supply and energy security.

What we're watching

Policy Reversal
Whether Congress will act to replace '45Z' with simpler biofuel tax incentives.
Market Impact
How continued biodiesel consumption declines will affect fuel retailers and farmers.
Regulatory Dynamics
The pace at which the Treasury Department may adjust '45Z' guidelines in response to industry pressure.