USDA Releases 45Z Guidance for Regenerative Biofuel Feedstock Carbon Intensity

The USDA has published long-awaited technical guidance for the 45Z Clean Fuel Production Tax Credit, detailing how farmers can measure and verify carbon intensity for biofuel feedstocks like corn, soybeans, and sorghum. The rules require field-level data on nitrogen use, cover crops, tillage, and yield to qualify for the credit. A mass balance approach is used for traceability, meaning grain must stay in the biofuel supply chain to count. The guidance gives farmers and ethanol producers a clearer path to participate, though Treasury and DOE rules are still pending. Continuum Ag, which built a CI certification platform, called the move a major milestone for low-carbon agriculture.