US Guidance Proposal on Bioduel Tax Credit Excludes UCO Imports but Includes US and Canadian Canola

The US Treasury Department has issued short-term guidance on the 45Z Clean Fuels Production tax credit which excludes used cooking oil (UCO) imports but includes US and Canadian canola, the Oils & Fats International reported last January 27, citing a DTN report.  The exclusion of UCO imports was due to problems tracing its origin and as palm oil could be mislabeled as UCO, the Treasury Department said.
Prior to the ruling, there had been concerns about an influx of UCO imports in the US market, making it difficult to track feedstock quality, DTN wrote in an earlier report on January 10.  Some biofuel interest groups said the proposal lacked key details and package fell “short of expectations” and was “incomplete”.
On the other hand, in a joint statement, the National Oilseed Processors Association (NOPA), which represents US crushing companies, issued a joint statement with the American Soybean Association (ASA), which represents soyabean farmers, welcoming the restrictions on imports.