The head of the Iowa Biodiesel Board says producers are welcoming an executive order meant to streamline the process of claiming a tax credit for producing low emission fuels, but there’s still uncertainty. Grant Kimberly says some of the larger biodiesel producers are in a better position to claim the 45-Z credit. But smaller independent producers have to work through a third party to sell the credit and often must wait several weeks and in some cases up to a year to get paid.
While the industry has had a few difficult years, Kimberly says he’s cautiously optimistic about the future. Almost all of the Iowa biodiesel plants that were idle at this time last year are now running. He says it was a challenge holding onto highly skilled workers through the period of low demand.
President Trump signed the executive order, dubbed the “Regenerative Feedstock Rule,” last month. Kimberly says the Energy and Treasury Departments still need to finalize rules for quantifying the greenhouse gas reductions of biofuel production and determine the exact credit eligibility.
