Request for Information Aims to Develop Standards for Greenhouse Gas Emission Reductions from Biofuel Feedstocks
The U.S. Department of Agriculture (USDA) has launched a Request for Information (RFI) to gather industry insights on measuring reductions in greenhouse gas (GHG) emissions from crops used as biofuel feedstocks. This initiative is part of USDA’s broader efforts to promote the production of sustainable aviation fuel (SAF) and enhance climate-smart farming practices across the United States.
Announced by Agriculture Secretary Tom Vilsack at the Clean Fuels Alliance America’s annual meeting, the RFI seeks to explore the development of standards that would enable USDA to quantify, verify, and accurately report climate-smart practices at farm and production levels. These standards aim to demonstrate to the Treasury Department the feasibility of verifying emission reductions from individual practices rather than combinations thereof, as required by existing tax credits for SAF. Moreover, they intend to better account for regional variations in farming practices.
“Standards that differentiate between crops grown with and without climate-smart farming practices could incentivize further adoption of these practices and lead to corresponding reductions in GHG emissions,” stated the RFI.
Vilsack emphasized the diversity of farming experiences and the need for policies that reflect this diversity, highlighting the opportunity for stakeholders to share their insights through the RFI process. The information gathered will inform decisions on expanding the range of crops eligible for credits, potentially increasing options for airlines and fostering greater competition in the SAF market.
Key areas of interest outlined in the RFI include identifying biofuel feedstock crops, developing systems to trace feedstocks through the supply chain, defining data requirements for practice verification, exploring third-party verification mechanisms, and analyzing GHG outcomes of adopted practices.
While the RFI is not specific to the forthcoming 45Z tax credit, Vilsack noted that insights garnered could influence the development of this credit and other clean aviation fuel initiatives. The recent 40B tax credit, which allowed corn ethanol and soy oil to qualify as SAF under specific conditions, underscored the need for more flexible standards that accommodate diverse farming conditions nationwide.
Vilsack urged swift industry response to the RFI, with comments accepted until July 26. He emphasized the importance of timely guidance from the Treasury Department on the 45Z tax credit, ideally by fall, to provide clarity and support decision-making across the agricultural and aviation sectors.
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