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Process Safety Management: Immediately Notify New Proposed Rules for Clean Fuel Credits
NPGA In early February, the Internal Revenue Service
The Occupational Health and Safety Adminis- proposed new regulations regarding the clean fuel
tration (OSHA), and its state-delegated enforcement production credit, aimed primarily at biofuels, such
authorities, have sought to apply process safety man- as renewable/bio-propane made from vegetable and
agement provisions to certain propane facilities which seed oils, and manure. The proposal aims to expand
should be exempted by the retail facility exemption. consideration for domestic production of biofuels, in-
OSHA has taken action against a number of different crease credit rebates, and diversify the transportation
propane companies in a variety of states. While NPGA fuel market. Most importantly, eligible fuel for the tax
continues to pursue advocacy to stop OSHA from credit must be suitable for use in transportation, but
its illegal enforcement actions taken without proper need not be actually used in transportation. Therefore,
authority, NPGA may be forced to seek judicial reme- transportation-grade renewable propane used for heat
dies. If you are being investigated by OSHA for issues would be eligible for the credit.
of process safety management, please inform NPGA The rule, Section 45Z – Clean Fuel Production
General Counsel Benjamin Nussdorf immediately so Credit is a technology-neutral federal tax credit en-
the NPGA legal team can investigate potential legal acted under the Inflation Reduction Act of 2022, and
actions on behalf of the association and the industry later extended and modified by the One Big Beautiful
as a whole. If NPGA is not aware of the action within Bill Act of 2025, recorded in Title 26 of the Code of
60 days of your receiving notice, it may not be able to Federal Regulations, Parts 1 and 48. The 45Z credits
help you. For questions or concerns, please reach out apply to the producers of transportation fuels with
to Mr. Nussdorf.■ low lifecycle greenhouse gas emissions. Under the
NPGA’s Response to State of the Union new amendments, producers will be able to qualify
On February 23rd, President Trump gave his for rebates under a broad range of production meth-
State of the Union address to a joint session of Con- ods, replacing older fuel-specific tax incentives that
gress. The President touched on many issues that screened out fuels made as by-products. The proposed
affect the U.S. economy generally and the energy amendments clarify that credits will be applied only to
sector specifically. He reflected on his legislative and source producers of fuels, not transporters or con-
regulatory priorities, including private-sector job and sumers. Producers are defined as processors who alter
wage growth, increased business investment, and source-elements into useable fuels—which in the case
reduced inflationary and regulatory pressures on of propane, applies to the refiner. The credits will apply
consumers and industries. President Trump noted the retroactively to all fuels sold during 2025 and thereon
economic and national security benefits of U.S. energy until the end of 2029.
dominance and emphasized expanding domestic oil Specific fuel eligibility is determined using
and natural gas production, which will also increase the DOE’s 45ZCF-GREET lifecycle modeling framework
propane production. The U.S. is already the world’s already in use. The up-to-date GREET model will be
leading producer and supplier of propane – ensuring a required for each year of tax filing, eliminating grand-
reliable and affordable energy option remains available fathered statuses based on previous years’ standards.
for consumers – and NPGA encourages the President Additionally, GREET will now disregard indirect land-
and Congress to focus on the many benefits of domes- use changes, including unintended emissions from
tically produced energy resources as part of a national the cultivation of previously fallow land, reducing
energy strategy that promotes robust competition and emissions portfolios for biofuels. One of the largest
availability in the marketplace, both of which greatly new points of interest is a requirement that producers
benefit energy consumers and the American public. be American-owned or controlled and use Ameri-
NPGA will continue to engage the Trump Adminis- can-sourced feedstocks to produce fuel. No specific
tration and Congress to promote the legislative and fuels are highlighted in this new regulation for favor
regulatory priorities of member companies and the by evaluators, levelling the playing field for new and
U.S. propane industry.■ improved biofuels.

28 Alabama Propane Gas Association | March / April 2026