Groups React to Climate Smart Ag Rule and GREET Model

Cindy Zimmerman

Biofuel organizations welcomed the release Wednesday of USDA’s interim rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks, in addition to a beta version Feedstock Carbon Intensity Calculator, and the Department of Energy release of the 45ZCF-GREET model

The rule establishes guidelines for quantifying, reporting, and verifying the greenhouse gas emissions associated with the production of corn, sorghum, and other biofuel feedstock crops grown in the United States and could help inform the inclusion of CSA practices in future clean fuel regulations and tax credit programs, like the 45Z clean fuel production credit.

“America’s ethanol producers applaud USDA for publishing these important guidelines, and we sincerely thank Secretary Tom Vilsack for his extraordinary vision and leadership,” said Renewable Fuels Association President and CEO Geoff Cooper. “Today’s USDA guidelines finally create a much-needed structure for properly assessing, valuing, and integrating the carbon reduction benefits of certain farming practices into lifecycle analysis.”

The rule mentions work by the American Coalition for Ethanol (ACE) Regional Conservation Partnership Program (RCPP) projects, which will serve as a resource to inform updated greenhouse gas (GHG) credit values for CSA practices. “The ACE-led USDA-Natural Resource Conservation Service (NRCS) Regional Conservation Partnership Programs (RCPPs) are designed to help improve the accuracy of the GREET model, and we look forward to partnering with Argonne scientists and USDA, particularly in how climate-smart agriculture crops are calculated under GREET and USDA’s new feedstock carbon intensity tool, to ensure farmers and ethanol producers can maximize on 45Z and future programs,” said ACE CEO Brian Jennings.

Clean Fuels Alliance America says USDA’s rule could enable American farmers and biofuel producers to calculate the carbon benefits of conservation practices. “These rules are crucial to our industry, and continued growth in the industry is essential to the agricultural sector and to U.S. energy security. We will continue to work with our members to evaluate whether today’s releases provide clean fuel producers the policy certainty they need to negotiate feedstock and fuel offtake agreements, and ultimately grow the production and market for biomass-based diesel,” said Clean Fuels Vice President of Federal Affairs Kurt Kovarik.

USDA is requesting public comment on the interim rule to help inform future revisions or additions to the final rule until March 18, and ultimately the final decision will be made by the incoming Trump administration. RFA intends to provide comments to USDA on potential improvements, including the need for a decoupled, book-and-claim approach for supply chain management of CSA feedstocks.

ACE, aviation biofuels, Biodiesel, biofuels, Clean Fuels Alliance, corn, Ethanol, Ethanol News, Renewable Fuels Association, RFA, USDA

Sec. Vilsack Bids Farewell with Climate-Smart Agriculture Rule

Cindy Zimmerman

Secretary of Agriculture Tom Vilsack held his last official press conference of his tenure at USDA on Wednesday, announcing the publication of an interim rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks.

The interim rule establishes guidelines for quantifying, reporting, and verifying the greenhouse gas (GHG) emissions associated with the production of biofuel feedstock commodity crops grown in the United States. These guidelines will facilitate the recognition of climate-smart agriculture within clean transportation fuel programs, creating new market opportunities for biofuel feedstock producers while enhancing climate benefits.

The action today is essentially what was missing from the 45Z guidance offered by U.S. Treasury last week and makes changes from the rules for 40B, according to Sec. Vilsack. “First of all, there’s an additional crop in addition to corn and soybeans. We now include sorghum. There are additional climate smart agricultural practices, including reduced tillage and fertilizer application timing. As importantly, practices may be used individually or in combination. They are not required to be bundled. And the CI reductions that result from using each practice would be better and more precisely estimated than they were for the pilot program in 40B.”

Click here to get the details from USDA and listen to Vilsack’s press conference below:

Sec. Vilsack final presser (23:20)

Audio, aviation biofuels, biofuels, Ethanol, Ethanol News, USDA

Iowa Biodiesel Production Grows, But Future Uncertain

Cindy Zimmerman

Despite many challenges, Iowa biodiesel production in 2024 totaled 353 million gallons, up from 350 in 2023 and the highest production since the record 365 million in 2018.

Iowa biodiesel plants managed to power through being undercut by a drastically low Renewable Fuel Standard (RFS) blending level for 2024, but could not escape uncertainty surrounding tax policy as the long-time biodiesel blenders credit expired while the rules for the new 45Z Clean Fuel Production Credit remain in flux. By the end of 2024, multiple Iowa biodiesel plants were not producing.

“Iowa biodiesel producers powered through most of 2024, but the end of the year brought a time of uncomfortable uncertainty,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “We need quick action in Washington to prevent 2025 from being worse. Multiple plants are sitting at idle waiting and hoping for the Treasury Department to finalize the rules for the new 45Z Clean Fuel Production Tax Credit. Tax credit uncertainty has tied the entire biodiesel supply chain up in knots. We need action now. Biodiesel remains a key part of ensuring domestic energy security while boosting rural communities and farmers.”

Soybean oil continues to be the main source of biodiesel in Iowa, accounting for 77 percent of the production in 2024. Animal fats made up 9 percent, while canola oil, distillers corn oil, and used cooking oil (UCO) each made up over 4 percent of feedstocks.

Iowa’s ten biodiesel plants have the capacity to produce 416 gallons annually. The IRFA compiled production information from a confidential industry survey.

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Terviva Secures Investment to Scale Pongamia for SAF

Cindy Zimmerman

Agricultural innovation company Terviva has announced a strategic investment from integrated energy company Idemitsu Kosan Co., Ltd (Idemitsu) to advance efforts to help farmers grow and harvest pongamia for food, feed and fuel.

Idemitsu, in partnership with Terviva and Stanmore, an Australia-based coal resource company, is beginning a trial plantation of Terviva’s pongamia in Queensland, Australia. This collaboration leverages Terviva’s scalable tree production and Idemitsu’s expertise in fuels to accelerate the global production of sustainable aviation fuels (SAF) with oil from Terviva’s proprietary pongamia technology. Terviva has developed a model that ensures high yields for farmers and a robust end market for the entire pongamia bean, while Idemitsu’s industry knowledge streamlines the path to market for the oil as SAF.

Pongamia growing in former Florida citrus groves

Pongamia is recognized for its ability to serve as a feedstock for Sustainable Aviation Fuel (SAF) using HEFA1 technology. Through this trial planting, Idemitsu Kosan will gain an understanding of growing pongamia in a non-typical cropping area, and work on development and optimization of the supply chain for SAF production. Additionally, the company will explore the creation of carbon credits through afforestation, the production of black pellets from shells for biomass power plants, the use of pressed seed pomace as livestock feed, and other uses beyond feedstock for SAF.

We interviewed Terviva back in October when the company had received an investment from Chevron REG. Learn more about Terviva and pongamia in this interview with CEO Naveen Sikka and COO Simmarpal Singh.

Interview with Terviva (19:04)

Audio, aviation biofuels, feedstocks, SAF

Delta and Airbus Invest in MN SAF Hub

Cindy Zimmerman

Delta Air Lines celebrated its centennial anniversary at the 2025 CES last week in Las Vegas with a number of announcements, including deepening its sustainability partnership with Airbus as the French airplane manufacturer invests in scaling the production of sustainable aviation fuel through Minnesota SAF Hub.

Airbus, the largest airplane manufacturer in the world, was a founding partner of Delta’s Sustainable Skies Lab when it launched at CES 2023. Airbus announced its commitment to join the Minnesota SAF Hub, a first-of-its-kind SAF coalition that brings together stakeholders with a shared commitment to aggressively decarbonize the airline industry. Airbus will also join a demand consortium with a multi-year commitment to purchase SAF.

“At Airbus, we pioneer sustainable aerospace for a safe and united world,” said Julie Kitcher, Airbus Chief Sustainability Officer and Communications. “With Delta we are redefining the future of aviation. By leveraging our combined expertise, we are accelerating groundbreaking innovations—from advancing cutting-edge flight techniques to scaling up the production of renewable fuels (SAF). Together, we are addressing today’s challenges and shaping a more connected, lower carbon future for generations of travelers to come.”

The nature of Airbus’ involvement has not been detailed, but Delta says the world’s largest airplane maker’s commitment to the project is part of a “multi-decade partnership” between the two companies.

aviation biofuels, SAF

Treasury 45Z Guidance Addresses Cooking Oil Imports

Cindy Zimmerman

Clean fuels producers, soybean growers, and oilseed processors were pleased to see the U.S. Treasury Department’s notice of intent to propose regulation on the Clean Fuel Production Credit (45Z) released on Friday addressed the issue of imported used cooking oil being used to qualify for the credit. However, they are disappointed in the lack of guidance for farmers to utilize climate smart agriculture practices to produce crops approved for Sustainable Aviation Fuel.

The American Soybean Association and National Oilseed Processors Association appreciate that the guidance addresses their concerns about imported waste feedstocks for biofuel production by “ensuring imported used cooking oil remains ineligible for the 45Z credit through the GREET model until such time that Treasury can promulgate substantiation regulations for imports.”

Through September 2024, the United States has imported 5.4 billion pounds of UCO and tallow, far surpassing total record import levels from 2023, but according to NOPA, “by restricting import eligibility, the 45Z tax credit will benefit American farmers and processors as Congress intended.”

Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik said, “Clean fuel producers still need the carbon intensity scores from the GREET model to calculate their credit values; this missing information is key to enabling them to negotiate feedstock and fuel offtake agreements for the year and get back to business.”

aviation biofuels, Biodiesel, Clean Fuels Alliance, feedstocks, oilseeds, Soybeans

USDA Awards Another $60 Million in HBIIP Grants

Cindy Zimmerman

On Friday, USDA announced nearly $60 million in grants awarded through Higher Blends Infrastructure Incentive Program (HBIIP) to expand access to domestic biofuels in 24 states.

The states included are: Alabama, California, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas and Wisconsin.

Among the projects being funded:

In California, EZ Petroleum will use a $1.3 million grant to install 30 E85 dispensers and seven ethanol storage tanks at seven fueling stations in Winton, Fremont, South San Francisco, Salinas, Richmond and Fresno. This project is expected to increase the amount of ethanol sold by more than 391,000 gallons per year.

In Florida, Mas Fuel Distributors will use a nearly $2 million grant to install 14 E15 dispensers, 24 E85 dispensers, and eight ethanol storage tanks at three fueling stations in Hollywood, Miami and Homestead. This project is expected to increase the amount of ethanol sold by nearly 2 million gallons per year.

In Iowa, Morning Star Station LLC will use a $398,000 grant to install two E15 dispensers, one B20 dispenser, one ethanol storage tank and one biodiesel storage tank at a fueling station in Worthington. This project is expected to increase the amount of biofuel sold by more than 116,000 gallons per year.

E15, E85, Ethanol, Ethanol News, USDA

Treasury Releases 45Z Tax Credit Guidance

Cindy Zimmerman

Now that the Clean Fuels Production Credit has been in effect for ten days, the U.S. Treasury Department has finally dropped its proposed guidance for 45Z, which will now have a 90-day comment period.

The guidance includes both a notice of intent to propose regulations on the section 45Z credit and a notice providing the annual emissions rate table for section 45Z, which refers taxpayers to the appropriate methodologies for determining the lifecycle GHG emissions of their fuel. In conjunction with today’s guidance, the Department of Energy will release the 45ZCF-GREET model for use in determining emissions rates for 45Z in the coming days.

Renewable Fuels Association President and CEO Geoff Cooper says the guidance is still incomplete. “The guidance is a potential step in the right direction, but much work remains to be done before clean fuel producers, farmers, and consumers can fully benefit from the 45Z program.”

Cooper noted that important information from the emissions rate table remains unavailable in today’s guidance, making it impossible for producers to know whether their fuel is eligible for the credit or not. While that information, along with a new 45Z GREET model, is expected to be released soon, today’s guidance leaves biofuel producers in limbo. Today’s guidance also fails to integrate climate-smart agriculture (CSA) practices that can lower the carbon intensity of renewable fuels, and it does not allow producers to determine their own unique carbon intensity values (called a “provisional emissions rate”).

According to the guidance, Treasury “intends to propose rules for incorporating the emissions benefits from climate-smart agriculture (CSA) practices.”

These options would be available to taxpayers after Treasury and the IRS propose regulations for the section 45Z credit, including rules for CSA, and the 45ZCF-GREET model is updated to enable calculation of the lifecycle greenhouse gas emissions rates for CSA crops, taking into account one or more CSA practices.

Iowa Renewable Fuels Association Executive Director Monte Shaw was blunt in his assessment of the guidance. “Today’s announcement by the Treasury is a story of too little, too late. This is not a final rule. This is not a safe harbor. It isn’t even a proposed rule. Putting out a notice of ‘intent’ ten days before you leave office is nothing but punting the rule down the road.”

aviation biofuels, Ethanol, Ethanol News, RFA, SAF

Bayer Acquires Camelina Assets to Advance Biofuels

Cindy Zimmerman

Following an announcement yesterday on investing in winter canola as a biomass-based feedstock, Bayer today announced a deal with Canada-based Smart Earth Camelina Corp. to acquire camelina germplasm, intellectual property, and materials to expand its global leadership position in biomass-based feedstock markets.

This acquisition underlines Bayer’s goal to help decarbonize the transportation sector and to deliver regenerative agriculture solutions through the investment and development of intermediate oilseed crops to meet the demand of the growing renewable diesel and sustainable aviation fuel (SAF) markets which is estimated to increase from 14 billion to 40 billion gallons by 2040. Camelina is a novel intermediate oilseed crop with a promising low-carbon intensity for renewable fuel and can be grown in both spring and winter. Bayer intends to use its expertise in oilseeds to further develop this product.

Bayer intends to make additional progress this year in establishing new renewable fuel value chains to deliver fuel with lower carbon intensity than traditional fuel sources that offer farmers profitable alternative oilseed options. The introduction of camelina will complement Bayer’s existing work with CoverCress, and the recent announcement on scaling winter canola with the goal to launch hybrid TruFlex winter canola in the US in 2027.

aviation biofuels, Bayer, feedstocks, SAF

Bayer and Neste to Develop Feedstocks for Renewable Fuels

Cindy Zimmerman

Bayer has signed a memorandum of understanding (MOU) with Neste, a leading producer of sustainable aviation fuel and renewable diesel, to jointly scale winter canola as a biomass-based feedstock for renewable products like biofuels. The companies intend to develop a winter canola ecosystem in the Southern Great Plains of the US, including product development and additional collaborations to enable Bayer to enter this market.

“Renewable fuels are playing an important role in the decarbonization of transportation and energy while global targets continue to shape biofuel markets and accelerate demand for biomass-based feedstocks going forward,” said Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division. “We are committed to supporting farmers’ ability to deliver low-carbon feedstocks on demand, through investments in new crops like winter canola and advancements in sustainable cropping systems.”

Bayer aims to launch hybrid TruFlex winter canola in 2027. It offers many benefits to farmers as it includes Roundup Ready and pod shatter resistance technology, delivering excellent product stability and performance. Used as a new alternative rotational crop, winter canola helps sequester carbon in the soil and can improve soil health by increasing its organic matter content and water-holding capacity, leading to enhanced soil fertility and productivity.

The companies will be working together leading up to the launch to introduce winter canola as a biomass-based feedstock that delivers fuel with lower carbon intensity than traditional fuel sources. Bayer and Neste expect to finalize a definitive agreement later this year.

aviation biofuels, Bayer, canola, SAF