The USDA has finalized its Regenerative Feedstock Rule and a new Feedstock Carbon Intensity Calculator, creating a voluntary system for farmers to measure how regenerative practices lower the carbon intensity of crops used for biofuels. This rule covers corn, soybeans, sorghum, and spring canola, with requirements for traceability and verification. For ethanol producers investing in carbon capture and storage, this is a major development. Combining lower-carbon feedstocks with capture at the plant can significantly reduce the lifecycle carbon intensity of ethanol, boosting eligibility for the federal 45Z Clean Fuel Production Credit. The rule gives farmers a way to capture value from regenerative agriculture while providing biofuel producers with consistent data on feedstock emissions. The announcement comes as the ethanol industry shifts focus to lifecycle emissions and carbon capture projects expand across the Midwest. Industry groups say accurate on-farm emissions accounting is essential for maximizing the 45Z credit and competing in carbon intensity based fuel programs like California's.
