Green Credits Not a Hill to Die on for Supportive Republicans

March 12, 2025

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by Kelsey Brugger (E&E Daily) More than 20 House Republicans say renewable energy subsidies should be protected. That may not be enough to save them. -- A bloc of House Republicans is doubling down on their public support for protecting renewable energy tax credits — but exactly how far they will go to save at least part of former President Joe Biden’s climate law remains unclear.

Twenty-one Republicans over the weekend sent a letter to Ways and Means Chair Jason Smith (R-Mo.) — the House’s lead tax writer — voicing support for “sector-wide energy tax credits” intended “to make major investments in domestic energy production and infrastructure for traditional and renewable energy sources alike.”

The letter comes as Republicans are beginning in earnest to seek out savings in their budget reconciliation bill. The bill seeks to cut taxes, boost spending on the border and bolster energy — all along party lines.

The purpose of the letter was to emphasize that at least 21 Republicans do not want to “throw out the IRA entirely,” said GOP Rep. Buddy Carter, one signer who has relentlessly touted a $7.6 billion Hyundai vehicle and battery plant in his deep-red Georgia district. The company said it sped up construction to take advantage of domestic production incentives.

But despite this renewed push — after a similar one last summer — and new signatures, not all GOP supporters of Inflation Reduction Act provisions would threaten to vote against legislation coveted by Republican leaders and the White House.

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Slashing the Inflation Reduction Act tax credits could provide Republicans with a sizable saving to pay for their budget bill. While the Congressional Budget Office initially said the clean energy subsidies would cost roughly $369 billion over a 10-year period, analysts project that number could triple as more project owners access the programs.

Top Republicans are eyeing pairing a repeal of the EV tax credit with a rollback of the Biden administration tailpipe emissions rule, though there is uncertainty whether they can do that.

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Capitol Hill has been flooded lately with clean energy lobbyists and companies urging lawmakers to consider developers who have been relying on the existing tax structure to plan for projects that are overwhelmingly in red states and congressional districts — ranging from solar and wind power to carbon capture and biofuels.

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He (Dusty Johnson (R-S.D.)) thought a Midwest contingent would push for biofuel subsidies, as they did in 2023 when Republicans tried to strike ethanol tax credits from their debt ceiling bill. But he suggested some might be staying quiet.

“There are some very reasonable Midwest members who care about the development of ag-based energy who absolutely have red lines. They are not communicating them publicly because that’s not how they do business. They don’t make public demands. But there is a fair group — a fair-sized group — that just really believe in the future of America energy as derived from agriculture products.” READ MORE

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Fuel Retailers, Trucking Fleets and Home Heating Industry Urge Congress to Extend the 'Section 40A' Biodiesel Blenders' Tax Credit (NATSO/PR Newswire)

Excerpt from NATSO/PR Newswire: NATSO, representing America's truck stops and travel centers, SIGMA: America's Leading Fuel Marketers, American Trucking Associations (ATA), the Clean Freight Coalition (CFC), Energy Marketers of America (EMA), the National Association of Convenience Stores (NACS), the National Energy & Fuels Institute (NEFI) and the Truckload Carriers Association (TCA) urged Congress to extend the 'Section 40A' Biodiesel Blenders' Tax Credit. Extending the longstanding, bipartisan $1 per gallon tax credit will ensure that the current uncertainty in the advanced biofuel industry does not result in higher fuel prices at the pump.

Fuel retailers, distributors and blenders, trucking fleets and consumers of renewable fuels support tax policies that result in lower fuel prices. Renewable diesel and biodiesel provide affordable, cleaner-burning fuel that reduces American dependence on foreign energy sources, stabilizes domestic fuel markets, and enables consumers to purchase more competitively priced diesel fuel. Biodiesel and renewable diesel have historically been the most widely used biofuels in commercial trucking and remain the most viable option for reducing carbon emissions from the nation's trucking, home heating oil, and rail industries.

"The expiration of the Biodiesel Tax Credit at the end of 2024 has decimated biofuels supply chains. Many biofuel production facilities, particularly biodiesel plants, have scaled back or are shutting down entirely," the organizations said in a letter to the House Ways and Means Committee. "Consumers should not have to incur unnecessary cost increases for everyday goods like food, medicine, and other essential commodities if stability is not restored to biofuels markets through an extension of the Biodiesel Tax Credit."

Economists predict inflation could rise 2.5 percent in 2025, elevating it to a top economic issue in the United States. Restoring the Biodiesel Blenders' Tax Credit is a concrete step that Congress can take to help mitigate inflationary threats that persist throughout the economy, including tariffs.

The Biodiesel Tax Credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps lower the prices consumers pay for goods transported by truck.

Since its introduction in 2004, the Biodiesel Blenders' Tax Credit has successfully motivated retailers to invest in infrastructure needed to support low-carbon fuel options, while also making renewable fuel blends more affordable for consumers.

The Biodiesel Blenders' Tax Credit has been instrumental in developing a strong renewable diesel industry in the United States, driving significant growth in production. The U.S. biodiesel and renewable diesel market expanded from approximately 100 million gallons in 2005 to around 4 billion gallons in 2023, all while contributing to lower transportation-related carbon emissions.

About NATSO, SIGMA, NACS, ATA, CFC, EMA, NEFI, TCA

NATSO is the trade association representing America's travel plaza and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truck stop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segments of the industry while providing information and services to members. For more information visit SIGMA.org.

NACS advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve. The U.S. convenience store industry, with more than 153,000 stores nationwide selling fuel, food and merchandise, serves 165 million customers daily—half of the U.S. population—and has sales that are 10.8% of total U.S. retail and foodservice sales. NACS has 1,300 retailer and 1,600 supplier members from more than 50 countries.

ATA is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation's freight.

CFC is an alliance of truck transportation stakeholders committed to a clean energy future for America's trucking industry. Participating associations span motor carriers of every size and sector, truck dealers, truck stop operators, and equipment manufacturers – forming the linchpin of the U.S. supply chain.

EMA is a federation of 49 state and regional trade associations representing family-owned and operated small business energy marketers throughout the United States. Energy marketers represent a vital link in the motor and heating fuels distribution chain. EMA members supply 80 percent of all finished motor and heating fuel products sold nationwide including renewable hydrocarbon biofuels, gasoline, diesel fuel, biofuels, heating fuel, jet fuel, kerosene, racing fuel and lubricating oils.

TCA is the only trade association whose sole focus is the truckload segment of the motor carrier industry. The association represents dry van, refrigerated, flatbed, tanker, and intermodal container carriers operating throughout North America. Founded in 1938, the TCA represents operators of nearly 210,000 trucks, which collectively produce revenue of more than $38 billion in annual truckload revenue.

NEFI Since 1942, NEFI has been a leading voice for wholesale and retail liquid heating fuel distributors. Members include mostly small, family-owned and -operated businesses that deliver warmth and comfort to millions of American homes. These businesses distribute vital home heating fuels and related products and services to residential and commercial customers. READ MORE