RFA urges faster updates to emissions model and clearer guidance rules
The Renewable Fuels Association (RFA) has said that the U.S. Department of Treasury has made good progress in developing rules for the Section 45Z Clean Fuel Production Credit. However, the group believes more clarity and improvements are still needed to make the program effective.
One of the most important concerns raised by the RFA is the delay in releasing the updated 45ZCF-GREET model. This model helps ethanol producers measure the emissions rate of their fuel, which directly affects the value of the tax credit they can receive.
“If effectively implemented, the 45Z tax credit has the potential to stimulate domestic energy production, strengthen U.S. energy security, bolster rural economies, and support increased investment and innovation in the renewable fuels and agriculture sectors,” said RFA President and CEO Geoff Cooper.
“The technology-neutral structure of 45Z is a crucial feature, allowing clean fuel producers to pursue the most economically efficient and practical pathways for reducing emissions and boosting domestic energy production,” said Cooper.
However, Cooper warned that some parts of the current proposal may create confusion and limit participation. He noted that unclear rules could lead to unexpected market impacts and reduce the effectiveness of the program in the short term.
The RFA strongly supports recent updates to the program under new legislation and has urged the Treasury and the Department of Energy to quickly release the updated emissions model. The association also recommended working with the Department of Agriculture to develop fair and science-based guidelines for regenerative agriculture and feedstock calculations.
Other key suggestions include adopting a flexible emissions rate process, keeping energy attribute certificates as a tool to reduce emissions, and clarifying rules around ethanol classification and eligible fuels.
The RFA also asked for clearer guidance on foreign feedstock rules and labor requirements. Cooper emphasized that final regulations must be simple, practical, and supportive of investment in clean fuel technologies.
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