Clean Fuels welcomes updated SAF GREET model, says more work needed on oilseed modeling, 45Z credit

Clean Fuels Alliance America expressed appreciation April 30 to USDA, the U.S. Treasury Department, Argonne National Laboratory, U.S. DOE and other federal agencies for finalizing updates to the GREET model that will allow taxpayers to use it in calculating 2023-’24 sustainable aviation fuel (SAF) blender tax incentives (§40B).

“The updates for the first time recognize the carbon benefits of some of the climate-smart agriculture practices that U.S. farmers are already utilizing,” Clean Fuels stated.

The association, however, urged USDA and the treasury department to further update the GREET model to include additional climate-smart agriculture practices specific to oilseed crops and quickly finalize rules for the 2025-’27 tax incentives (§45Z clean-fuel production credit), which will support U.S. biodiesel, renewable diesel and SAF producers.

“Clean Fuels and its members appreciate the significant work of USDA and other federal agencies to account for the role that U.S. farmers will play in decarbonizing the nation’s aviation fuel,” said Kurt Kovarik, Clean Fuels’ vice president of federal affairs.

“U.S. farmers and SAF producers will continue to work with the agencies to rapidly expand SAF production over the next few years,” Kovarik said.

Clean Fuels said it continues to assess the changes to the GREET model unveiled April 30, including updated indirect-emission penalties for U.S. oilseed crops like soy and canola.

Clean Fuels added that it believes there is more work to be done to enable credit for climate-smart agriculture practices that U.S. farmers are deploying.

“Biodiesel, renewable diesel and SAF producers are already negotiating feedstock and fuel-offtake contracts for 2025, so we look forward to working with the treasury department and USDA to quickly turn attention to guidance for the clean-fuel production credit that begins Jan. 1 next year,” Kovarik said.

“We believe there are additional climate-smart agriculture practices and industry data that can be incorporated in the GREET model to support the continued sustainable growth of the entire clean-fuel industry,” he added.

Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and SAF supply chain, including producers, feedstock suppliers and fuel distributors.

Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board, Nebraska Soybean Board and other state checkoff organizations.