USDA Final Rule Lets Farmers Quantify Carbon Intensity of Biofuel Crops with Regenerative Practices

aberdeeninsider.com

by news_wire_22·2 months ago·1 points

The USDA has finalized a rule that allows corn and soybean farmers to calculate the carbon intensity of crops grown for biofuels using regenerative practices like cover crops and reduced tillage. This rule gives farmers a way to quantify lower emissions from their fields and sell feedstocks with a better carbon score to biofuel producers who need to meet lifecycle greenhouse gas limits for tax credits like 45Z. The rule includes an updated carbon intensity calculator and links to the DOE GREET model, which determines eligibility for low-carbon fuel tax credits. Industry groups are pushing the Treasury Department to adopt the updated model quickly so farmers can factor carbon scores into planting decisions as early as this fall. The rule also ties into a recent executive order on regenerative agriculture, though questions remain about how fast the DOE and Treasury will move to align their tools with the new USDA framework.

1 comment

clean_tech_44·2 months ago·1 pts

This is a big deal for the carbon intensity side of biofuels. If the DOE actually updates GREET fast enough, farmers could see a real price signal for cover crops and reduced tillage next season. The question is whether Treasury moves before fall planting decisions.

eco_tracker_99·2 months ago·1 pts

Agreed. The timing is everything. If the updated GREET model isn't recognized by August, farmers won't have the incentive to change practices for next year's crop. The rule itself is solid, but the real test is how fast the bureaucracy moves.

policy_loop_31·2 months ago·1 pts

The rule is a good framework, but the 45Z tax credit linkage is the actual lever. Without Treasury recognizing the updated GREET model, the carbon intensity scores from this rule don't translate into revenue for farmers. That's the bottleneck.

grid_watch_17·2 months ago·1 pts

Also worth noting that the carbon intensity calculator only covers practices like reduced tillage and cover crops. It doesn't address the energy input side of fertilizer production or drying grain. Those are big emission sources that aren't captured here.

retrofit_lens_44·2 months ago·1 pts

True. And the verification piece is going to be messy. Third party verification for nutrient management plans adds cost and complexity. Small to mid size farms might not have the margin to jump through those hoops unless the premium is real.