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
-
Microsoft's "Pause" Just Produced 650,000 Tonnes of BECCS Microsoft's "Pause" Just Produced 650,000 Tonnes of BECCS
Inside This Issue 🌱 Microsoft's BioCirc Deal Signals BECCS Is Now Bankable 🔎 Hydrogen Exploration in Iowa Well Underway 🛢️ Alberta Sees Oil Sands Deal on Carbon Project Within Two Months 🍁 This Ca...
-
2.3 Million Tonnes Removed. One Buyer Did Half.
Inside This Issue 🛫 Boeing Backs $10M Quebec SAF Project to Fly by 2027 🏗️ Eni CCUS Holding Expands the Financing Sources for Its Platform of CCS Projects 🍁 GeoRedox and Canada Nickel Launch First...
-
EPA Repeal Rule Heads to White House — Big Shift for Carbon Projects?
Inside This Issue 🏛️ EPA Sends Final Rule to Repeal Power Plant Greenhouse Gas Standards to White House for Review 🌬️ NTT DATA Partners with Climeworks for Carbon Removal 🏭 Honeywell Gives a Shutt...
Company Announcements
-
Project Paves the Way for a Carbon Capture Industry in the Golden State KERN COUNTY, Calif., May 26, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) has achieved the first la...
-
Vallourec AND Syngular Solutions SIGN A MEMORANDUM OF UNDERSTANDING TO ACCELERATE THE DEVELOPMENT OF BIOENERGY WITH CARBON CAPTURE AND STORAGE PROJECTS Meudon (France), on May 22, 2026 – Vallourec...
-
MPI Leads Hydrogen Fuel Technology Evaluation at Southern Miss
The Mississippi Polymer Institute (MPI) at The University of Southern Mississippi is steering evaluation of the commercial and industrial viability of clean energy technology, including hydrogen’s ...
-
Collaborative R&D on next-gen technologies including waste heat recovery power generation and CCUS, driving local implementation Part of the Industrial and Technological Benefits (ITB) pro...