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Feb. 4, 2026 Source: Renewable Fuels Association news release Washington, DC -- The Renewable Fuels Association today welcomed the Treasury Department's release of proposed regulations for the Section 45Z Clean Fuel Production Tax Credit, as authorized by the 2022 Inflation Reduction Act and amended by last year's One Big Beautiful Bill Act. "Today's 45Z proposed rule is a step in the right direction toward providing the clarity and certainty that ethanol producers are seeking," said RFA President and CEO Geoff Cooper. "We thank the Treasury Department and Trump administration for listening to the input provided by ethanol producers and other stakeholders. The proposal appears to resolve some of previous confusion around what constitutes a 'qualified sale,' and begins to integrate the important improvements to 45Z that resulted from the One Big Beautiful Bill Act, such as removal of indirect land use change emissions from the carbon intensity scoring framework. "However, much work remains to be done and many questions still need to be answered. First and foremost, ethanol producers are anxiously awaiting a new, revised version of the 45ZCF-GREET model, which will help shed light and provide clearer direction on several critical issues. In addition, questions remain to be resolved around the quantification of emissions related to low-carbon feedstock production at the farm level, implementation of foreign feedstock prohibitions, and provisions related to the use of energy attribute credits." Cooper said RFA looks forward to providing comments on the proposal to the Treasury Department and intends to testify at an upcoming hearing on the rule. RFA initially filed detailed comments with Treasury in April 2025, stating that the final 45Z regulations must recognize the realities of today's biorefining and agriculture sectors and the complexities of our nation's transportation fuels marketplace. At the same time, we said, final regulations must maintain an intuitive and manageable approach to registration, reporting, and recordkeeping that creates the kind of dependable value that empowers businesses to invest. Since then, the passage in July of the One Big Beautiful Bill Act made several changes to improve the tax credit, such as extending its duration and including feedstocks grown in Canada and Mexico. Importantly, it also harmonized indirect land use change emissions with actual data and evidence, resulting in zero ILUC penalty for corn ethanol. About the RFA Since 1981, the Renewable Fuels Association has been the leading trade association for America's ethanol industry, working to drive expanded demand for American-made renewable fuels and bioproducts worldwide. Tweet |
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