Dept. of Energy’s New 45Z Process Recognizes Biofuel Plant Innovation

Individual carbon intensity scores give producers an opportunity to maximize potential tax credits through technology investments

WEST DES MOINES, IA - The U.S. Department of Energy (DOE) announced a new process for fuel producers to petition for an individual evaluation of their fuel production pathways when they are not covered by existing default carbon intensity (CI) rate tables. Because a plant's CI score directly impacts its potential 45Z Clean Fuel Production Tax Credit, the process creates an opportunity for producers to demonstrate how investments and innovations at their facilities are improving efficiencies and lower CI.

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw issued the following statement:

"One size does not fit all. Today's action by the DOE is good news for biofuel producers. While default values are a good starting point, they don't tell the whole story. IRFA members are constantly innovating and investing in ways to lower their CI scores. Individual plants need an opportunity to demonstrate the improvements happening inside their plants and have that innovation rewarded."

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The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 42 ethanol refineries capable of producing over 5 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 8 biodiesel facilities with the capacity to produce 408 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org .