Department of Energy Biden-Harris Administration Announces Interagency Commitment to Lower Transportation Emissions and Consumer Costs, Bolster Domestic Energy Security

The Biden Administration today announced a Memorandum of Understanding (MOU) among four federal agencies to accelerate the nation’s affordable and equitable clean transportation future. The U.S. Departments of Energy, Transportation, Housing and Urban Development, and the U.S. Environmental Protection Agency will work collectively to reduce greenhouse gas emissions associated with the transportation sector and to ensure resilient and accessible mobility options for all Americans. Domestic transportation—including both passenger and freight—produces more greenhouse gas emissions than any other sector. Working closely with states, local communities, Tribal communities, labor unions, nonprofits, and the private sector, the agencies will combine efforts to advance low- and zero-emission transportation solutions to reduce reliance on fossil fuels, create clean transportation jobs, and support President Biden’s goal of achieving net-zero emissions economy-wide by 2050. Of interest to the biofuel and bioenergy industries, the newly signed law establishes new tax credits for sustainable aviation fuel (SAF), clean transportation fuels and clean hydrogen. It also extends several existing tax credits that benefit transportation biofuels, such as renewable diesel and biodiesel, and includes funding for biofuel infrastructure development.