FFAFD Applauds Minnesota State Rep. Paul Anderson Letter to Treasury

Minnesota State Representative Paul Anderson recently penned a letter to the U.S. Department of the Treasury, urging the agency to get the rulemaking right on the 45Z clean transportation fuel tax credit.

In part, Rep. Anderson wrote,

“Done right, 45Z creates a powerful incentive for private capital to flow into the Midwestern power grid, especially rural electric cooperatives. Through qualifying electricity contracts and the resulting tax credits, biofuel producers can drive billions of dollars into grid upgrades that lower energy costs, strengthen co-ops, keep farm operations viable, and create good-paying jobs across rural America. But those benefits will only materialize if Treasury gets the rules right… I respectfully urge Treasury to protect the eligibility of qualifying electricity contracts in the 45Z rulemaking. Specifically, Treasury should require biofuel producers to source power from suppliers within their own regional grid, as defined in the Department of Energy's Transmission Needs Study. This commonsense guardrail ensures that investment stays where production happens, so Midwestern communities actually receive the infrastructure upgrades, grid reliability, and lower costs that 45Z is meant to deliver.”

Read the full letter here.