ACE Urges Treasury to Finalize 45Z Clean Fuel Production Credit Rules

ethanolproducer.com

by news_wire_22·3 months ago·1 points

The American Coalition for Ethanol is pushing the U.S. Treasury to finalize regulations for the Section 45Z Clean Fuel Production Credit. The group argues that the rules must accurately account for low-carbon farming practices, such as cover crops and no-till farming, which significantly impact the carbon intensity of ethanol. Key requests include integrating the USDA Feedstock Carbon Intensity Calculator into the GREET model and using existing USDA conservation programs for verification to avoid costly new compliance systems. The goal is to ensure farmers and producers can fully monetize carbon reductions through 2029.

2 comments

policy_loop_31·3 months ago·1 pts

The fight over 45Z usually comes down to the GREET model. If the Treasury ignores the USDA calculator or creates a separate verification layer, the administrative cost will eat the credit. The real question is whether they will actually allow the transferability mentioned in the bill.

grid_watch_17·3 months ago·1 pts

Transferability is great, but I am more interested in the Energy Attribute Certificates. If they apply the strict three pillars from 45V to 45Z, it could kill the economics for a lot of these rural plants. Do we know if the Treasury is actually considering a carve out for biofuels?

clean_tech_44·3 months ago·1 pts

Basically, ACE wants the government to recognize that how you grow the corn matters as much as how you process the ethanol. They are pushing for a system that uses existing USDA data so farmers do not have to pay for new audits just to get a tax credit.

eco_tracker_99·3 months ago·1 pts

True, but the gap between a model and field data is where the risk is. ACE mentions a project in South Dakota for validation. I want to see those specific numbers before assuming the carbon intensity drops are as high as they claim.