Kurt Kovarik, Clean Fuels Vice President of Federal Affairs, said, “We greatly appreciate Secretary Vilsack joining us today and acknowledging our industry’s need for both timely and accurate rules on climate smart ag practices. In speaking to our members, the Secretary delivered a message to representatives from the entire value chain of clean fuel production, from soy and canola farmers and feedstock producers to biodiesel, renewable diesel, and SAF producers and users.”

Clean Fuels hosted 100 industry representatives this week, Monday, June 24 – Wednesday, June 26, at its annual June Membership in Washington, D.C.

Kovarik continued, “We appreciate the fact that Secretary Vilsack understands the importance of having guidance for 45Z well in advance of January 1, 2025, so farmers, producers and fuel customers have the certainty to continue to produce and use low-carbon biomass-based diesel. While this request for information will have broader applications than just guidance on next year’s Clean Fuel Production Credit, it can inform the modeling and measurement of lifecycle carbon scores at the center of the credit. As Secretary Vilsack noted, farmers are already employing practices that continually improve the environmental profile of their operations and the carbon lifecycle for clean fuel production. We welcome his call for our industry to get that message to other federal stakeholders.”

Contact: Paul Winters, pwinters@cleanfuels.org, 202-737-8803.

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“With the Sec. 45Z credit set to take effect January 1, 2025, our member companies and organizations may face significant headwinds and business risk if this guidance is not published promptly,” the groups write. “Any extended delays in publication of guidance for the Sec. 45Z credit may disrupt project timelines, impede capital flows, and threaten existing production and demand for low carbon renewable fuels.”

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, added, “U.S. biodiesel and renewable diesel producers are facing uncertainty as the transition from the biodiesel and renewable diesel blender credit to the producer credit. They are facing difficulties already as they try to negotiate feedstock and fuel offtake contracts for next year. The need for policy certainty is urgent.”

Joining Clean Fuels in signing the letter are Advanced Biofuels Business Council, Airlines for America, Alternative Fuels & Chemicals Coalition, American Biogas Council, American Short Line and Regional Railroads Association, American Soybean Association, Associated Equipment Distributors, Association of American Railroads, Association of Equipment Manufacturers, Cargo Airline Association, Coalition for Renewable Natural Gas, General Aviation Manufacturers Association, Growth Energy, Methanol Institute, National Air Transportation Association, National Business Aviation Association, National Corn Growers Association, National Oilseed Processors Association, North American Renderers Association, Renewable Fuel Association, SAF Coalition, U.S. Canola Association, Vertical Aviation International, and Waste Gas Capture Initiative.

Contact: Paul Winters, 202-737-8803, pwinters@cleanfuels.org.

The post Groups Urge Treasury to Promptly Complete §45Z Clean Fuels Production Credit Guidance appeared first on Clean Fuels Alliance America.

Clean Fuels urges USDA and Treasury to further update the GREET model to include additional climate smart agriculture practices specific to oilseed crops and quickly finalize rules for the 2025-2027 tax incentives (§45Z Clean Fuel Production Credit), which will support U.S. biodiesel, renewable diesel, and SAF producers.

“Clean Fuels and its members appreciate the significant work of USDA and other federal agencies to account for the role that U.S. farmers will play in decarbonizing the nation’s aviation fuel,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “U.S. farmers and SAF producers will continue to work with the agencies to rapidly expand SAF production over the next few years.”

Clean Fuels continues to assess the changes to the GREET model unveiled today, including updated indirect emission penalties for U.S. oilseed crops like soy and canola. Clean Fuels believes there is more work to be done to enable credit for climate smart agriculture practices that U.S. farmers are deploying.

“Biodiesel, renewable diesel, and SAF producers are already negotiating feedstock and fuel offtake contracts for 2025, so we look forward to working with Treasury and USDA to quickly turn attention to guidance for the Clean Fuel Production Credit that begins on January 1 next year.” Kovarik added. “We believe there are additional climate smart agriculture practices and industry data that can be incorporated in the GREET model to support the continued sustainable growth of the entire clean fuel industry.”

Contact: Paul Winters, 202-737-8803, pwinters@cleanfuels.org

The post Clean Fuels Welcomes §40B SAF GREET Model appeared first on Clean Fuels Alliance America.

WASHINGTON, DC – Today, Clean Fuels Alliance America welcomed guidance from the U.S. Department of the Treasury and Internal Revenue Service (IRS) on the new §40B Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA). The guidance enables companies currently producing SAF under the Renewable Fuel Standard (RFS) to access the base value of the tax incentive. However, it defers allowing producers to use the Argonne National Laboratory’s Greenhouse gases, Regulated Emissions, and Energy use in Transportation (GREET) model to calculate additional credit. The U.S. Department of Energy is expected next year to issue a modified GREET model for use in association with the credit.

“We appreciate President Biden recognizing that American farmers and clean fuel producers will be providing essentially all of the sustainable aviation fuel available over the next 20 years to meet the administration’s Grand Challenge,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “Enabling U.S. taxpayers to access a lifecycle model developed by U.S. national labs is clearly the best way to provide assurance to fuel producers and meet the demand for low-carbon fuels from airlines and passengers.”

Kovarik continued, “We look forward to continuing our productive working relationship with Argonne National Labs, providing real-world data on fuel production and feedstocks, and ensuring the GREET model remains up to date. We will be watching closely for any updates to the model to ensure they accurately reflect the carbon reductions that clean fuels are already achieving.”

Contact: Paul Winters, pwinters@cleanfuels.org, 202-737-8803

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