On Thursday, December 11, Senator Marsha Blackburn (R-TN) introduced the “Consumer Relief and Opportunities for Producers Act” (S. 3297) that would temporarily reinstate the $1 per gallon ‘40A’ Biodiesel Blenders’ Tax Credit through May 31, 2026.

NEFI has joined with other industry associations to endorse the CROP Act. Under the bill, taxpayers could elect either the reinstated Biodiesel Blenders’ Tax Credit or the existing 45Z Clean Fuel Production Credit, which has faced delays and uncertainty since its enactment. Prolonged ambiguity around 45Z has coincided with a sharp decline in biodiesel consumption, from over 2 billion gallons in 2024 to 960 million gallons through October 2025, hurting farmers, fuel marketers, and consumers.

In a press release distributed on Thursday, NEFI President and CEO Jim Collura said, “Reliable and affordable supplies of biodiesel and renewable diesel are a top priority for America's heating oil dealers, who serve nearly 5 million homes across the country. NEFI is therefore proud to endorse the Consumer Relief and Opportunities for Producers Act. Enactment of this bill would support our mostly small family businesses transition to renewable liquid heating fuels, which offer a lower cost and more immediate solution to reduce building emissions and contribute to regional energy security and diversity.”

At this stage, the prospects for passage are unclear. Our immediate challenge is identifying a viable legislative vehicle since this is tax policy, and it is always difficult to move tax provisions as a stand‑alone measure. The purpose of the bill is to address the longstanding lack of clarity surrounding the 45Z credit, which was created in the IRA in 2022. Although 45Z was implemented at the beginning of 2025, there is still no final, definitive guidance. Nothing has been issued by the new administration to date, and the extended government shutdown has further contributed to delay.

NEFI’s endorsement is consistent with longstanding NEFI policy and was cleared through the Biofuels Action Subcommittee. A House companion bill is expected to be introduced in the new year.

NEFI is proud to endorse this legislation and will continue working with our partners to advocate for its swift passage.

For more information, please contact NEFI Manager of Government Affairs, Liam Dotson, at Liam.Dotson@nefi.com or (202) 843-1000.