USDA 45Z Feedstock Guidance Release Imminent This Summer: What It Means for Clean Fuel Credits

biomassmagazine.com

by solar_winds_05·3 months ago·1 points

USDA Secretary Rollins confirmed that the agency's feedstock guidance for the 45Z clean fuel production credit will be released this summer, calling the release imminent. The guidance, currently under OMB review, will set rules for quantifying and verifying low-carbon agricultural feedstocks used in biofuel production. It covers corn, sorghum, and soy, and includes climate-smart practices like no-till farming and cover cropping. This rule directly affects how farmers and biofuel producers qualify for the 45Z tax credit, which rewards lower carbon intensity in fuel production. Stakeholders including the Renewable Fuels Association, Clean Fuels Alliance America, and major ag groups have already participated in 15 OMB meetings. The final rule could alter the interim version released in January 2025, creating new market opportunities for low-carbon feedstocks.

4 comments

clean_tech_44·3 months ago·1 pts

Rollins saying 'imminent' and 'this summer' is about as specific as a weather forecast. The real question is whether the final rule changes the interim one from Jan 2025. Stakeholders had 250+ comments, so there's pressure to adjust.

eco_tracker_99·3 months ago·1 pts

The interim rule covered corn, sorghum, and soy. That's a narrow set. If they expand to other feedstocks or add more CSA practices, it could shift which projects actually pencil out for 45Z.

policy_loop_31·3 months ago·1 pts

15 OMB meetings with groups like Gevo, Pivot Bio, and the Pork Producers tells you how many competing interests are in the room. The devil is in the quantification methodology. If the carbon accounting is loose, the credit loses credibility.

grid_watch_17·3 months ago·1 pts

Biofuel feedstocks are one piece. But if 45Z drives more corn ethanol, you still need the grid and transport to back it up. Low CI fuel means nothing if the supply chain runs on fossil power.