You need to set the render layer using
RenderTypeLookup#setRenderLayer
within your FMLClientSetupEvent to make blocks transparent.
It takes in two parameters: the block and the RenderType.
The RenderTypes are as follows:
Solid - field_228615_R_
Cutout Mipped - field_228616_S_
Cutout - field_228617_T_
Translucent - field_228618_U_
Translucent (No Crumbling) - field_228619_V_
Leash - field_228620_W_
Water Mask - field_228621_X_
Glint - field_228622_Y_
Entity Glint - field_228623_Z_
Lightning - field_228624_aa_
What you are looking for is either cutout mipped or cutout so use either RenderType#field_228616_S_ or RenderType#field_228617_T_ to accomplish this.