Several major trade associations, including NATSO, SIGMA, and the National Association of Convenience Stores (NACS), are pressing the U.S. Treasury Department for clear guidance on the new 45Z Clean Fuel Production Credit, warning of potential disruptions to fuel pricing and market stability if the guidance is improperly implemented. Simultaneously, these groups are voicing strong opposition to the RECHARGE Act, a federal proposal they argue could undermine private sector investment in electric vehicle charging infrastructure by allowing charging stations at interstate rest areas.
Along with the American Trucking Associations and Truckload Carriers Association, the groups have collectively appealed to the U.S. Treasury Department and the IRS to provide comprehensive guidance on the new 45Z Clean Fuel Production Credit. The groups emphasize that clear and precise guidelines are essential to avoid inflationary impacts on fuel prices and to maintain stability within the market.
In a joint letter, the associations highlighted the significant effects that the forthcoming guidance will have on the supply and pricing of gasoline and diesel. The letter underscored the importance of enabling fuel purchasers to accurately determine the tax credit value associated with each gallon of biofuel to ensure that consumers benefit from the credit through lower fuel prices.
"If designed improperly, the implementing guidance could inject massive disruption and confusion into already-volatile motor fuel and biofuels markets," the associations warned. "The consequence will undoubtedly be higher prices at the pump for consumers."
The industry groups are urging the Treasury to include specific provisions in the guidance:
The associations expressed concerns that improper implementation of the 45Z Credit could disrupt the current fuel market, where biodiesel and renewable diesel have historically been treated as fungible commodities. They stressed that if the guidance fails to consider routine commercial practices in biofuel purchasing and blending, there could be inflationary pressures on retail fuel prices.
On the heels of the 45Z letter and request for guidance, NATSO, SIGMA, and NACS also came together to voice strong opposition to the RECHARGE Act (S.4989), introduced by Senators Jeff Merkley (D-Ore.), Ron Wyden (D-Ore.), and Chris Van Hollen (D-MD). The associations argue that the legislation would severely hinder private sector investment in EV charging infrastructure by amending federal law to allow automotive services, including EV charging stations, at rest areas along interstate highways.
The opposition comes as the private sector has been actively investing in EV charging stations under the federal Infrastructure Investment and Jobs Act (IIJA), particularly through the National Electric Vehicle Infrastructure (NEVI) Grant Program. The program is designed to create a nationwide EV charging network by leveraging private investment, which the RECHARGE Act threatens to undermine.
David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA, stated, "Allowing EV charging at rest areas will keep the private sector from installing EV chargers at today's refueling locations. The fastest way to eliminate range anxiety is to incentivize private industry to invest in EV charging infrastructure so drivers can refuel where they do today. Introduction of the RECHARGE Act undermines the progress in EV charging installation that has been made since enactment of the bipartisan Infrastructure Investment and Jobs Act, which laid the groundwork for the private sector to invest in EV charging stations."
Paige Anderson, Director of Government Relations for NACS, also criticized the bill, noting, "Drivers of electric vehicles deserve all the benefits that drivers of conventional vehicles have today with plenty of options for refueling competing with one another to keep costs low and constantly improve offers including food, beverages, and the full range of services that motorists have come to expect. The RECHARGE Act would undermine private sector investment and instead leave electric vehicle drivers with fewer charging options at deserted rest areas that don't give customers what they want."
The associations highlighted that over half of NEVI grants have been awarded to fuel retailing locations, underscoring the critical role of private businesses in expanding the EV charging network. They caution that allowing EV charging stations at rest areas would create an uneven playing field, where state-operated rest areas could outcompete private businesses due to their advantageous locations on interstate highways.
The RECHARGE Act, they argue, could reverse the progress made since the enactment of the IIJA by disrupting ongoing installations of EV charging infrastructure by private fuel retailers.
