Oilseed associations in the USA have welcomed a bill to support the production of renewable fuels from domestically sourced feedstocks.
The National Oilseed Processors Association (NOPA) and the American Soybean Association (ASA) welcomed the move in an announcement on 24 September.
In addition to restrict eligibility for the Section 45Z Clean Fuel Production Tax Credit to fuels produced from domestic feedstocks, the Farmer First Fuel Incentives Act would make the tax credit a 10-year credit by extending it to 2034.
“NOPA commends this bipartisan, bicameral legislative effort which puts US fuel producers, US crushers and US farmers first,” NOPA president and CEO Kailee Tkacz Buller said.
“We support free trade and open markets, but do not believe foreign feedstocks should benefit on the backs of US taxpayers to the detriment of US farmers. Without this fix, the 45Z credit will incentivise the use of foreign feedstocks over those grown by US farmers. Our industry has made significant investments to expand US crushing capacity by 30% and this fix is pivotal to ensuring these investments are delivered.”
ASA president Josh Gackle said for the USA’s biofuels industry to continue growing, US farmers needed the support of a final 45Z rule prioritising domestically sourced feedstock.
From 1 January 2023 to 30 June this year, the USA imported a total of 7.9bn pounds (3.6bn tonnes) of used cooking oil (UCO) and tallow, the equivalent to soyabean oil crushed from over 650M bushels. This compared to a total of 6.1bn pounds (2.8bn tonnes) of US imports of UCO and tallow between 2000-2021.
NOPA represents the US soyabean, canola, flaxseed, safflower seed and sunflowerseed crushing industries. Its members crush approximately 2bn bushels/year for meal and oil which is used in the manufacturing of food, feed, renewable fuels and industrial products.
ASA represents US soyabean farmers on domestic and international policy issues relating to the soyabean industry.
