IRFA tells IRS 45Z must harness ingenuity, hard work of American farmers

The Iowa Renewable Fuels Association submitted comments April 10 to the Internal Revenue Service regarding the proposed guidance for the 45Z clean fuel production credit, recognizing that IRFA and others are working separately with the Trump administration and Congress to authorize year-round E15 and setting appropriate Renewable Fuel Standard blending levels.

IRFA highlighted the potential 45Z has to power American energy dominance from coast to coast, especially in the heartland.

“The time has come,” the comments stated. “IRS should work with [USDA] to finalize regenerative ag practices that will reduce the emissions rate for renewable fuels production facilities. What matters is harnessing the ingenuity and hard work of American farmers to further the goal of American energy dominance while providing a commonsense method for farmers to be financially rewarded for this service.”

The comments also included suggested:

• Streamlining and reduction of prevailing wage and apprenticeship (PWA) requirements.

• Removing all indirect land-use change (ILUC) penalties.

• Establishing feedstock certainty.

• Clarifying all end-use markets.

• Addressing the current rounding emissions-factor guidance that leads to inherent risk.

“IRFA has heard from members that both benefit from and are harmed by the current rounding regime,” the comments stated. “In the end, the consensus is that while plants are differently impacted today, as the industry continues to become more efficient, all plants will be on the ‘short end’ of the rounding regime over time. Therefore, IRFA asks IRS to explore all possible measures allowed under this law and other provisions to finalize a rounding regime that is more granular in nature.”

A copy of IRFA’s submitted comments can be found here.

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 4.7 billion gallons annually—including 34 million gallons of annual cellulosic ethanol production capacity—and 10 biodiesel facilities with the capacity to produce 416 million gallons annually.