Biofuel stakeholders provided testimony to the U.S. Department of Treasury this week on ways to improve and finalize the 45Z Clean Fuel Production Credit rules.
During a public hearing, Renewable Fuels Association President and CEO Geoff Cooper urged Treasury to immediately release an updated 45ZCF-GREET model that integrates changes to the 45Z program mandated by last year’s One Big Beautiful Bill Act. “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,” Cooper said. “We are nearly halfway through the 2026 tax year, and still clean fuel producers do not have access to the model required for determining emissions rates, which of course, ultimately drives determinations of 45Z credit values. Delays are creating tremendous uncertainty and investment risk.”
American Coalition for Ethanol (ACE) Chief Consultant and Policy Advisor Jonathon Lehman stressed that ethanol producers and farmers need clear rules that allow the industry to fully monetize carbon reductions achieved through conservation practices and innovation. “ACE members sit at the intersection of American agriculture and American energy,” Lehman testified. “45Z—strengthened in the One Big Beautiful Bill through transferability and extension through 2029—is a genuine market-based lifeline, but only if Treasury finalizes rules that allow full monetization of low-carbon farming practices.”
Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik also testified on the need for additional certainty through timely final rules and updates to the 45ZCF-GREET model. “While the Proposed Regulations provide much-needed market certainty for biodiesel and renewable diesel producers, we are requesting additional clarity in some areas. Specifically, for instance, we are awaiting publication of the modified 45ZCF-GREET model. We would also appreciate additional guidance as to how to apply the credit to fuel produced prior to publication of the proposed rule and further clarity on the Prevailing Wage and Apprenticeship requirements as they relate directly to 45Z.”