The American Soybean Association welcomed actions this week from the U.S. Department of Energy and Internal Revenue Service that provide greater clarity and usability for the 45Z Clean Fuel Production Credit, an important tool for supporting domestic biofuel production and demand for U.S. soybeans.
DOE updated the 45ZCF-GREET model to incorporate carbon intensity adjustments for certain regenerative agricultural practices, including practices used in soybean production. The IRS also issued a notice providing updated emissions rate information and allowing qualifying agricultural practices to be reflected in calculations for the credit.
ASA said the actions provide greater economic certainty for the biofuels industry, which is an important source of domestic demand for U.S. soybeans.
As implementation moves forward, ASA said it will continue advocating for a flexible book-and-claim system that allows all farmers to participate in and receive value from the low-carbon attributes of their soybeans without requiring physical segregation throughout the supply chain.
The association said it will continue working with the administration as policies are developed to strengthen the U.S. biofuels market and soybean farmers who supply it.
Source: American Soybean Association, "ASA Welcomes 45Z Updates Supporting U.S. Soybean Farmers, Biofuels"