Treasury asked to finalize 45Z rules and update GREET model soon
The Renewable Fuels Association (RFA) has urged the U.S. Department of the Treasury to quickly finalize clear and practical regulations for the Section 45Z Clean Fuel Production Credit. The association said timely action is necessary to support clean fuel producers and ensure the program delivers its intended benefits.
“We believe that, if implemented effectively, the 45Z tax credit can stimulate domestic energy production, strengthen U.S. energy security, bolster rural economies, and drive innovation in the renewable fuels and agriculture industries,” said RFA President and CEO Geoff Cooper.
“The technology-neutral structure of 45Z is a crucial feature of the program, enabling producers to pursue the most efficient and economically practical pathways for reducing emissions and boosting production of homegrown fuels,” said Cooper.
However, the RFA warned that delays in finalizing the rules are creating uncertainty. Producers need clear guidelines to make both short-term operational decisions and long-term investments. Without this clarity, participation in the program could decline, reducing its overall impact.
A major concern is the delay in releasing the updated 45ZCF-GREET model. This model is essential for calculating emissions rates and determining credit values. The RFA highlighted that producers are already well into the 2026 tax year without access to this critical tool, increasing financial risk.
The RFA also suggested improvements to strengthen the program. It recommended adding separate pathways for ethanol produced from cellulosic corn and sorghum fiber, which have very low emissions. It also called for corrections to the emissions model to avoid penalizing facilities using combined heat and power systems.
In addition, the RFA supported recognizing regenerative agriculture practices but stressed the need for clear and practical certification systems. It highlighted concerns about new definitions of low-emission ethanol and called for alignment with existing regulations.
Finally, the association asked for clearer guidance on compliance requirements to reduce confusion for producers.
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