Feb 3 (Reuters) - The U.S. Treasury Department on Tuesday issued a proposed rule governing how biofuel makers can access a $1-per-gallon tax credit for low-carbon transportation fuels, including aviation fuel.
The rule was welcomed by biofuel trade groups that said the plan could provide more certainty for producers of ethanol, biodiesel and other products seeking the credit.
>> In Other News: Trafigura Just Bought 6 Years of Jet Fuel Made from Dairy Waste
Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
The program, dubbed 45Z, was created under former President Joe Biden's Inflation Reduction Act and was amended last year in President Donald Trump's One Big Beautiful Bill.
Advertisement · Scroll to continue
Changes included allowing for low-carbon fuel produced with feedstocks grown in Canada and Mexico as well as tweaks to the methodology for calculating a feedstock's land use intensity.
"Today’s 45Z proposed rule is a step in the right direction toward providing the clarity and certainty that ethanol producers are seeking," said Geoff Cooper, president and CEO of the Renewable Fuels Association.
He said some questions about the program remained unanswered, however, including the makeup of a revised climate model that could impact fuel eligibility and the implementation of foreign feedstock prohibitions.
Representatives for soy farmers also welcomed the rule.
"Updating federal biofuel policies to prioritize soy-based fuels is a key ASA priority, and we applaud Treasury for this action which will help build domestic markets for U.S. soybeans," said Scott Metzger, president of the American Soybean Association.
Subscribe to the newsletter
Daily decarbonization data and news delivered to your inbox
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Latest issues
-
The $915M Ethanol Deal Where Carbon Capture Sets the Price
Inside This Issue 🌽 The Andersons Bets $915M on Low-Carbon Ethanol Plants 🌐 Rad Web Hosting Announces Fossil-Free Internet by 2030 Manifesto, Commits 1% of Revenue to Carbon Removal 💶 EU Earmarks ...
-
Which Texas Project Got Verra’s First CCS Credits?
Inside This Issue ✅ Verra Approves First Credits Under CCS Methodology ⚡ Houston-Based Transition Industries Signs EPC Deal for 210 MW Electrolyzer at Pacifico Mexinol 🏗️ Investing in Wyoming’s In...
-
CRC Vows to Fight Kern County CCS Ruling
Inside This Issue ⚖️ Court Sets Aside Kern County Approval of California’s First Carbon Storage Project, Carbon TerraVault I 🌲 The Integrity Council Approves Methodologies for Coal Transition and ...
Company Announcements
-
Survey to add new gravity measurements west of the Cloverleaf target and within the eastern block ahead of 3D inversion and 2D seismic-profile modelling VANCOUVER, British Columbia, Nov. 10, 2026 ...
-
Greene Tweed Introduces PFAS-Free Sealing Material Built for Hydrogen and CCUS Reliability
EPM 893 reduces sealing tradeoffs by combining low-temperature performance, decompression resistance, and chemical compatibility LANSDALE, PA, UNITED STATES, November 10, 2026 /EINPresswire.com/ -...
-
Aemetis Biogas Receives CARB Approval for Six Dairy RNG Pathways
CUPERTINO, Calif., Nov. 10, 2026 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that the California Air Resources Board (CARB) has a...
-
Syklea’s ALIUM technology will address carbon emissions for the industrial sectors in the U.S. with its new headquarters and laboratory in Vineland, New Jersey VINELAND, N.J., Nov. 10, 2026 (GLOBE...