In support of the proposed rulemaking for the Section 45Z clean fuel production credit, U.S. Sens. Joni Ernst (R-IA) and Jerry Moran (R-KS) joined 21 of their Republican colleagues in requesting that the Trump administration provide clarity for farmers, biofuel producers, and the agricultural community in the finalized 45Z rule.
“45Z was designed to add value to farmers’ crops and expand domestic production of clean, homegrown biofuels. Still, its success depends on clear, workable rules allowing farmers and biofuel producers to meaningfully participate,” the senators wrote in a March 12 letter sent to U.S. Treasury Secretary Scott Bessent, U.S. Energy Secretary Chris Wright, and U.S. Agriculture Secretary Brooke Rollins.
“As you finalize the rule, we urge you to ensure farmers can fully benefit from this new market by clearly recognizing and valuing conservation and regenerative practices used in the field,” they added. “Planting season is a few short weeks away in many parts of the country, and farmers need clear answers soon to fully take advantage of 45Z.”
Specifically, the senators pointed out that the Treasury Department under the Biden administration did not issue an “intent to propose rulemaking” until Jan. 10, 2025, after the credit had already taken effect.
“The lack of urgency sent a shock to the farm economy in our states,” they wrote. “To make matters worse, the updated Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model published by DOE under Biden came five days later and omitted USDA’s farm calculator entirely. In practice, this omission effectively excluded the American farmer from the model used to determine credit values.”
The senators wrote that as the rule is finalized, it is critical it clearly identifies the types of on-farm conservation practices capable of generating lower-carbon feedstocks and ultimately qualifying for a premium under 45Z.
Additionally, the final rule must not replicate the top-down approach taken by the Biden administration when it implemented a similar program under the section 40B sustainable aviation fuel credit, they added.
“Delivering this outcome after years of mismanagement under the previous administration will be a clear win for U.S. farmers and demonstrate the Trump administration’s commitment to a stronger rural America,” wrote the lawmakers.
Among the lawmakers who also signed the letter were U.S. Sens. Deb Fischer (R-NE), Mike Rounds (R-SD), Roger Marshall (R-KS), and U.S. Reps. Adrian Smith (R-NE), Ashley Hinson (R-IA), Zach Nunn (R-IA), David Valadao (R-CA), Erin Houchin (R-IN), Don Bacon (R-NE), Darin LaHood (R-IL), and Mike Bost (R-IL).