US DOE releases 45ZCF-GREET model

U.S. DOE released the 45ZCF-GREET model Jan. 15.

The release follows the U.S. Department of the Treasury and Internal Revenue Service guidance on the clean fuel production credit (45Z) issued Jan. 10.  

The clean fuel production credit provides a tax credit for the production of transportation fuels with lifecycle greenhouse-gas (GHG) emissions below certain levels.

The credit applies to eligible transportation fuel produced domestically after Dec. 31, 2024, that is sold by Dec. 31, 2027.

45ZCF-GREET includes feedstock-specific fuel-production pathways for sustainable aviation fuel (SAF) and non-SAF fuels including biodiesel and renewable diesel, among others.

The model is designed specifically to evaluate lifecycle-GHG emissions to meet the requirements of section 45Z and to include features that make it easy to use for taxpayers. 

DOE also released the 45ZCF-GREET user manual, which describes how the 45ZCF-GREET model characterizes lifecycle-GHG emissions of transportation-fuel production pathways and provides guidance for using the model to determine emissions rates for clean fuels under section 45Z.

The 45ZCF-GREET model and user manual are available on the DOE GREET webpage.

Clean Fuels Alliance America welcomed the release of the new GREET model and expressed appreciation to USDA for issuing an interim rule on technical guidelines for climate-smart agriculture (CSA) crops used as biofuel feedstocks, along with a beta version of its Feedstock Carbon Intensity Calculator.

Clean Fuels said the 45ZCF-GREET model and associated documentation provide needed clarity on how producers can calculate the credit and include its value in negotiating fuel sales and feedstock contracts.

The CSA model outlined by USDA, however, requires further work and cannot currently be calculated into the value of the 45Z credit, the trade association noted.

“We appreciate the treasury department, USDA and DOE issuing these long-awaited rules and models,” said Kurt Kovarik, vice president of federal affairs for Clean Fuels. “We also thank the many members of Congress who urged the administration to publish this guidance as soon as possible.”

Kovarik said biodiesel and renewable diesel combined are meeting 9 percent of U.S. demand for distillate fuel for heavy-duty transportation needs.

“These rules are crucial to our industry, and continued growth in the industry is essential to the agricultural sector and to U.S. energy security,” he said.

“We will continue to work with our members to evaluate whether today’s releases provide clean-fuel producers the policy certainty they need to negotiate feedstock and fuel offtake agreements and ultimately grow the production and market for biomass-based diesel,” Kovarik said.

He pointed out that USDA’s rule could enable American farmers and biofuel producers to calculate the carbon benefits of conservation practices.

“We look forward to continued work with USDA, the treasury department and DOE to ensure that farmers can financially benefit by adopting these practices and cooperate with clean-fuel producers to increase the value of domestically produced clean fuels,” Kovarik said.