Today, Clean Fuels Alliance America submitted a highly detailed, technical response to USDA’s Request for Information on climate smart agriculture practices for biofuel feedstocks. Clean Fuels emphasized the need for immediate guidance and certainty before biodiesel, renewable diesel, and sustainable aviation fuel producers and their farmer partners transition to the credit in January.
“Lack of regulatory certainty is already putting thriving businesses at risk as fuel producers are unable to make important business decisions regarding their fuel,” the letter states.
Secretary Tom Vilsack announces RFI at Clean Fuels June Member Meeting
Twenty-five trade associations sent a letter urging Treasury to finalize and publish guidance for the §45Z Clean Fuels Production Credit as soon as possible.
U.S. farmers and clean fuel producers urge rapid action on guidance for 2025-2027 incentives
Guidance defers allowing U.S. producers to access the GREET model for calculating SAF tax incentives
Clean Fuels, ASA, NOPA and U.S. Canola urge using the most recent version of the GREET model as the “similar methodology” option for determining SAF tax credit eligibility.
SAF derived from co-processing is ineligible for the tax incentive. Treasury should adopt GREET as the similar methodology.
Treasury should adopt the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model as the secondary methodology for calculating tax credits for sustainable aviation fuel (SAF) produced
Treasury should use GREET -- a U.S. lifecycle carbon emissions accounting model -- to determine tax credits for U.S. produced fuels.
It is critical that Treasury and IRS implement a verified, current, and science-based emissions rate methodology to set tax credit values.