en.Wedoany.com Reported - Biofuel organizations have responded positively to the update of the 45ZCF-GREET model released by the U.S. Department of Energy on Friday.

Emily Skor of Growth Energy stated that this is a major victory for the ethanol industry. Ethanol producers had been awaiting details, and the update provides them with certainty about what specific measures can qualify for tax credits this year.

Skor noted that this is one of three key components needed for the full implementation of 45Z. The other two include the U.S. Department of Agriculture (USDA) finalizing the farm practice calculator (currently under interagency review), and the U.S. Department of Treasury issuing final guidance explaining how producers can apply for the tax credit.

The 45Z Clean Fuel Production Tax Credit is a federal tax incentive that rewards producers blending ethanol and other biofuels such as biodiesel, renewable diesel, and sustainable aviation fuel.

The One Big Beautiful Bill Act, signed into law last year, updated the 45Z tax credit by excluding indirect land use change from emissions calculations, extending the credit through 2029, and limiting eligible feedstocks to North America. These updates took effect earlier this year.

In a statement, Geoff Cooper of the Renewable Fuels Association expressed gratitude for the updated model. The association has been reviewing the model and will engage with members across the supply chain to discuss its implications.

Kurt Kovarik of the Clean Fuels Alliance America said the update provides certainty for biofuel producers, promotes growth in the biofuel industry, and opens new markets for American farmers.

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