Clean Fuels Alliance America welcomed the Department of Energy’s release of the 45ZCF-GREET model for use in calculating carbon intensity scores and associated values for the §45Z Clean Fuels Production Credit. Clean Fuels also appreciated USDA for issuing an Interim Rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks, along with a beta version Feedstock Carbon Intensity Calculator.
The 45ZCF-GREET model and associated documentation provide needed clarity on how producers can calculate the credit and include its value in negotiating fuel sales and feedstock contracts. The Climate Smart Ag model outlined by USDA requires further work and cannot currently be calculated into the value of the §45Z credit.
Kurt Kovarik, Clean Fuels Vice President of Federal Affairs, stated, “We appreciate Treasury, USDA, and the Department of Energy issuing these long-awaited rules and models. We also thank the many Members of Congress who urged the Administration to publish this guidance as soon as possible. Biodiesel and renewable diesel combined are meeting 9% of U.S. demand for distillate fuel for heavy-duty transportation needs. These rules are crucial to our industry, and continued growth in the industry is essential to the agricultural sector and to U.S. energy security. We will continue to work with our members to evaluate whether today’s releases provide clean fuel producers the policy certainty they need to negotiate feedstock and fuel offtake agreements, and ultimately grow the production and market for biomass-based diesel.”
Kovarik added, “USDA’s rule could enable American farmers and biofuel producers to calculate the carbon benefits of conservation practices. We look forward to continued work with USDA, Treasury and the Department of Energy to ensure that farmers can financially benefit by adopting these practices and cooperate with clean fuel producers to increase the value of domestically produced clean fuels.”
Clean Fuels Alliance news release
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