By Jamie Martin
The Renewable Fuels Association has asked the U.S. Department of the Treasury to speed up the release of final rules for the Section 45Z Clean Fuel Production Credit. The group said clear and stable regulations are essential to help the clean fuel industry move forward with confidence.
“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.
Despite these benefits, the RFA warned that delays in finalizing the rules are creating major challenges. Clean fuel producers require certainty to plan investments and maintain operations. Continued delays may reduce participation and weaken the program’s effectiveness.
The association highlighted the urgent need for an updated 45ZCF-GREET model. This tool is used to calculate emissions levels and determine tax credit values. Without it, producers face difficulty making accurate financial and production decisions during the ongoing tax period.
The RFA also outlined several improvements to the program. It recommended including new pathways for ethanol made from advanced feedstocks such as corn fiber and sorghum fiber. It also called for adjustments to emissions modeling for facilities using energy-efficient systems like combined heat and power.
Additionally, the association supported the inclusion of regenerative agriculture practices, while stressing the importance of clear and practical certification methods. It also raised concerns about certain ethanol definitions that may conflict with current regulations.
To conclude, the RFA urged the government to provide clear compliance guidance and reduce unnecessary regulatory burden on clean fuel producers.
Photo Credit: vista-mipan
Categories: National