Fuel Retailers Urge Treasury to Rethink Biofuel Credit Policy
Event summary
- NATSO, SIGMA, and NACS filed public comments on April 7, 2026, opposing the current 'Section 45Z' Clean Fuel Production Credit rules.
- The groups argue the credit has failed to lower fuel prices or boost demand for corn and soybeans used in renewable fuels.
- They propose requiring transparent disclosure of credit values throughout the fuel supply chain to benefit consumers.
- The associations advocate for reinstating the Biodiesel Blenders' Tax Credit to stabilize diesel prices and support farmers.
The big picture
The fuel retail industry is pushing back against current biofuel credit policies, arguing they fail to deliver promised benefits to consumers and farmers. This regulatory tension comes as gasoline and diesel prices remain a key inflation indicator, with broader implications for transportation costs and consumer spending. The debate highlights the complex interplay between energy policy, agricultural markets, and retail fuel economics.
What we're watching
- Regulatory Response
- Whether Treasury will modify the '45Z' Credit rules to address fuel retailers' concerns about transparency and consumer benefits.
- Legislative Action
- The likelihood of Congress reinstating the Biodiesel Blenders' Tax Credit as an alternative policy approach.
- Market Impact
- How potential changes to biofuel policies might affect fuel prices and agricultural commodity markets.