President Joe Biden’s administration is set to announce short-term guidance on clean fuel tax credits on Friday, according to a Reuters report.
The Biden administration is likely to leave final decisions on clean fuel tax credits to President-elect Donald Trump when he takes office at White House on January 20, the report said.
In the US, biofuel companies and their supporters in the parliament will be cautious about Trump’s decision on the highly anticipated guidelines.
The new guidelines are expected to be aimed at the airline and biofuel industries in the country.
Trump had earlier said he will repeal Biden’s 2022 Inflation Reduction Act, which was launched to pay for the extension of his tax cuts, Reuters said in the report.
Lack of support for the program
According to the incumbent President, biofuel and airline companies can rely on the interim guidelines that are expected to be released on Friday.
However, this would increase uncertainty over the program and may force companies to be involved in more lobbying.
Reuters had reported earlier that the administration would not finalise the details of the guidance before Biden leaves office later this month.
The tax credit program was set to become effective on January 1. The program was meant to generate 3 billion gallons in production of sustainable aviation fuel by 2030.
However, lack of support from the US Treasury meant that the program could not be operational so far.
Around 2.5% of global greenhouse gas emissions are a result of air travel. The program aimed to reduce the carbon footprint of air travel in the US.
Reuters said that it was not certain whether the colder than expected weather in Washington and the funeral of former President Jimmy Carter this week would delay the timing of the release of the tax credits.
Trump’s energy picks
Meanwhile, the Energy Committee of the US Senate is likely to hold nomination hearings for Trump’s picks for energy roles on Tuesday and Wednesday, according to a separate report.
The energy committee’s chairman Senator Mike Lee said the panel will hold a hearing to consider Doug Burgum, Trump’s nominee to be secretary of the interior on Tuesday, January 14, according to Reuters.
Burgum was until last month the governor of North Dakota, which is a big oil-producing state.
According to the report, Burgum was also in line to head a New Energy Council under Trump’s presidency.
The council would be responsible for bringing out policies to boost oil production in the US.
Additionally, the committee will hold a hearing for Chris Wright, Trump’s pick for the US energy secretary role on January 15.
Wright is the CEO of Liberty Energy and is a staunch supporter of oil and gas production in the US.
He plans to step down from his role at Liberty Energy after his confirmation as secretary of energy.
The candidates are expected to be confirmed by the Senate next week, which is now controlled by Republicans.
This also means that the policies would be in favour of boosting oil and gas production in the US and rolling back several climate regulations passed under the incumbent President Joe Biden.
The post Biden administration may release short-term guidance on clean fuel tax credits on Friday appeared first on Invezz