As Congress debates cuts to offset tax-cut extensions, the future of the Clean Fuels Production Tax Credit remains uncertain, with potential impacts on Michigan's growing clean-fuel industry. The Clean Fuels Production Tax credit was established under the 2022 Inflation Reduction Act. It offers 20 cents per gallon for nonaviation fuels and 35 cents for aviation fuels which cut emissions by 50% compared with petroleum. Michigan has six key clean-fuel and alternative-energy initiatives, including Sustainable Aviation Fuel.

Alex Muresianu, senior policy analyst for Tax Foundation, estimates that repealing the credit could net about $12.8 billion over a decade based on Treasury projections, although he questions the math.

"That was based on some estimates from Treasury. It doesn't make sense to take a revenue cost estimate from Treasury and assume it will one-for-one translate into revenue raised from reversing a policy," she said.

Critics call credit initiative costly, favoring big companies while possibly raising fuel prices and distorting the market. It started on January 1st and is slated to run through 2027 unless extended.

Congress is divided on the future of these tax credits. While some want to eliminate them altogether to offset tax cuts, others warn that doing so could harm energy investments and job growth.

Nan Swift, a resident fellow of the Governance Program at R Street Institute, believes that right now, Congress is likely far from debating the finer details, and the tax credit is just one of those specifics.

"Certainly, it's on a a wish list for a lot of members, but we don't even know yet if the House and Senate can find agreement between their two-bill or one-bill plans," she explained.

Shortly after the Clean Fuels Production Tax Credit was enacted, debates arose about its cost, effectiveness and fairness over the broader economy.


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A major player in the Northwest's energy landscape is considering changes in the future, as extreme climate events make power delivery in Oregon more unpredictable.

Like utilities in the region, the Bonneville Power Administration - a nonprofit federal administration - is considering joining a larger energy market to ensure reliable access for customers.

BPA is favoring a market known as Markets+, which it says will be less expensive in the long run but could cost between $79 million and $129 million more for ratepayers in 2026.

However, organizations like Save Our Wild Salmon favor the Day-Ahead Energy Market, or EDAM.

Tanya Riordan, policy and advocacy director with the organization, said BPA needs to consider tribal rights in the region, especially when it comes to salmon.

"We can have a more open governance model," said Riordan, "that gives state officials and consumers an equal role, which would keep salmon recovery priorities at the forefront, which is what the EDAM market would offer."

Riordan said the transition to a larger energy market would reduce pressure on the federal hydropower system, also reducing pressure on the region's rivers and salmon.

A formal document outlining BPA's decision is expected in May.

Ben Otto, an energy consultant with the Northwest Energy Coalition, said he also favors EDAM.

He said the BPA has a unique role in the Northwest, with obligations to its customers, but also to the rest of the region by selling hydropower to keep bills low and running a transmission grid in the Northwest.

"Also by mitigating the impacts to salmon and wildlife and tribal interests," said Otto, "this is really important - and we really think that those obligations need to play a more significant role in Bonneville's decision, and we look forward to that being reflected in their record."

Otto said EDAM would reduce costs and be just as reliable as Markets+, and would make the integration of clean energy easier.

He noted that BPA wouldn't fully join the market, regardless of its choice, until 2028 - and so he's urging the administration to take its time making a decision.

"We believe a market that gives a strong role for public interest and state policy is a better fit for Bonneville's obligations than Markets+," said Otto, "which is really more of like a business league and more commercially focused."




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A major player in the Northwest's energy landscape is considering changes in the future as extreme climate events make power delivery in Washington more unpredictable.

Like utilities in the region, the Bonneville Power Administration, a nonprofit federal administration, is considering joining a larger energy market to ensure reliable access for customers. BPA is favoring a market known as Markets+, which it said will be less expensive in the long run but could cost between $79 million and $129 million more for ratepayers in 2026.

Organizations like Save Our Wild Salmon favor what is called the Day-Ahead Energy Market, or EDAM.

Tanya Riordan, policy and advocacy director for the group Save Our Wild Salmon, said BPA needs to consider tribal rights in the region, especially when it comes to salmon.

"We can have a more open governance model that gives state officials, consumers an equal role," Riordan suggested. "Which would keep salmon recovery priorities at the forefront, which is what the EDAM market would offer."

Riordan pointed out the transition to a larger energy market would reduce pressure on the federal hydropower system, also reducing pressure on the region's rivers and salmon. A formal document outlining BPA's decision is expected in May.

Ben Otto, energy consultant for the Northwest Energy Coalition, also favors EDAM. He said the BPA has a unique role in the Northwest with obligations to its customers but also to the rest of the region by selling hydropower to keep bills low and running a transmission grid in the Northwest.

"By mitigating the impacts to salmon and wildlife and tribal interests, this is really important and we really think that those obligations need to play a more significant role in Bonneville's decision," Otto explained. "We look forward to that being reflected in their record."

Otto noted EDAM would reduce costs and be just as reliable as Markets+ and would make the integration of clean energy easier. He emphasized BPA would not fully join the market, regardless of its choice, until 2028 and so he is urging the administration to take its time making a decision.

"We believe a market that gives a strong role for public interest and state policy is a better fit for Bonneville's obligations than Markets+, which is really more of like a business league and more commercially focused," Otto added.


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The U.S. military and a nonprofit environmental group are seeing success in a partnership that strengthens military readiness and conserves Indiana's natural resources.

Some military installations have compatible land uses around them, such as farms and forests, wetlands and grasslands. Sentinel Landscape, a federal initiative managed in part by the Department of Defense, works with nonprofits to manage those lands.

Emy Brawley, Midwest Region vice president at the Conservation Fund, said southern Indiana received a Sentinel Landscape designation in 2022, allowing her organization to work with bases across the region.

"That designation is supporting four Department of Defense installations, including the Lake Glendora test facility," she said. "All four of those installations provide a wide number of testing and training opportunities for multiple branches of our military."

Brawley said it's important to protect lands around military sites from encroachments that impact the military's ability to maintain mission readiness. She added that commercial developments near military bases can cause noise or light pollution that restricts training and testing drills.

Brawley's organization works in the new Busseron Creek Fish and Wildlife Area, the largest conservation project in Indiana in 20 years. The site serves as a buffer of undeveloped land near the Lake Glendora Test Facility, a military base.

Brawley said the area's natural resources are critical for certain species of wildlife in Indiana.

"This new Fish and Wildlife Area protects a five-mile segment of Busseron Creek, along with forests and wetlands and grasslands and streams and lakes," she said. "In fact, a nearby Fish and Wildlife Area documented over 250 different bird species using it."

Brawley said protecting the land in the new fish and wildlife area will make it more functional as a training and testing site. It also allows for public access and recreational activities such as fishing, hunting and camping.