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NATSO and SIGMA Urge Transparency for Biofuel Credits

On May 27, 2026, representatives from NATSO, the industry association for truck stops and travel centers, and SIGMA, America's leading fuel marketers, testified before the U.S. Treasury Department. They advocated for the finalization of the 'Section 45Z' Clean Fuel Production Tax Credit rule, emphasizing the need for transparency in biofuel transactions. This transparency is crucial not only to help lower diesel prices but also to support American consumers directly impacted by volatile fuel costs.

During their presentation, NATSO and SIGMA highlighted that now is a critical time to require producers benefiting from the '45Z Credit' to disclose the specific per-gallon credit value to fuel purchasers. Such a mandate would empower wholesalers, terminal operators, blenders, and retailers to negotiate fuel prices that adequately reflect the value of the credit, ultimately allowing savings to be passed on to consumers who are currently bearing the brunt of high fuel prices.

The transparency proposed by NATSO and SIGMA also promises to ensure that American farmers and feedstock producers receive a fair share of the benefits generated by commodity pricing. The representatives testified: "The Treasury can materially enhance the capacity of the '45Z Credit' to serve as a relief mechanism for high fuel prices. Fuel retailers work in a highly transparent, competitive, and low-margin segment of the economy. As the value flows into the fuel supply chain, we ensure it reaches consumers—the very individuals feeling the pressure from soaring diesel prices and the instability of global energy markets."

A study conducted by GlobalData, a leading energy research firm, noted that only about 20% of the 'Section 45Z' tax credit value trickles down through the supply chain to blenders and consumers. In contrast, when the previous $1 per gallon Biodiesel Tax Credit was enacted, between 50% and 70% of its value was effectively realized by consumers and farmers alike.

While awaiting Congress to reinstate the Biodiesel Blenders' Tax Credit, NATSO and SIGMA stressed the necessity for the Treasury Department to utilize its authority to assist American consumers facing escalating fuel prices. By lowering the costs associated with buying and blending biofuels, fuel retailers can offer more affordable prices at the pump—clear benefits for the everyday consumer.

The original structure of the $1 per-gallon Biodiesel Blenders' Tax Credit provided a level of clarity that enabled fuel retailers to recognize consistent and measurable savings and extend those benefits directly to consumers. However, the intricacies posed by the current '45Z' producer tax credit complicate this framework.

Fuel retailers currently lack the means to identify the credit value tied to any specific fuel volume. Furthermore, the credit value itself varies based on multiple factors, including the source of energy, feedstocks used in biofuel production, and the operations of the facility producing it. Without a clear understanding of the tax credit's value per gallon, fuel retailers cannot access the savings necessary to pass along to consumers effectively.

NATSO and SIGMA have expressed their appreciation to Congress and the current Administration for reinstating technology neutrality to the '45Z' credit through the One Big Beautiful Bill Act, urging the Treasury to ensure this aspect remains a focus throughout the implementation process.

Moving forward, NATSO and SIGMA commit to collaborating with the U.S. Treasury Department to ensure that the finalized '45Z' rule facilitates meaningful relief for American consumers, directly impacting the prices they pay at the pump. Both organizations remain dedicated to advocating for policies that benefit not only the fuel marketers and retailers they represent but ultimately the consumers who rely on affordable fuel as part of their daily lives.

About NATSO and SIGMA

NATSO has represented America's travel center and truck stop industry since its founding in 1960, focusing on legislative and regulatory matters affecting the industry. In addition to providing education and support, NATSO conducts an annual convention and advocates for an improved business environment for its members. For more details, visit NATSO.com.

SIGMA, which originated in 1958 as the Society of Independent Gasoline Marketers of America, is the national trade association advocating for some of the most successful and innovative fuel marketers and chain retailers in the United States and Canada. With a diverse membership of around 250 retailers and marketers, SIGMA aims to further the interests of both branded and unbranded segments of the industry. More information can be found at SIGMA.org.