The American Carbon Alliance (ACA) submitted comments to the U.S. Department of the Treasury on the proposed guidance for the Section 45Z Clean Fuel Production Credit, emphasizing the need for clear, durable rules that support investment across agriculture and energy.
Section 45Z represents a significant opportunity to align American agriculture, domestic energy production, and innovation. Done right, it can create new markets for U.S.-grown feedstocks, strengthen rural economies, and expand low-carbon fuel production.
In its comments, ACA highlighted the importance of ensuring the final rule provides certainty for producers, developers, and investors across the full value chain. Without that clarity, the industry risks slowing investment at a time when new market opportunities are urgently needed.
Farmers are already facing tight margins driven by rising input costs and lower commodity prices. Creating new demand for agricultural products through low-carbon fuels and related markets is not a future opportunity, it is a current necessity.
ACA also urged Treasury to recognize the full range of emerging markets tied to 45Z, including low-carbon fuels beyond aviation, renewable chemicals, and new agricultural inputs derived from low-carbon processes. Expanding these pathways will be key to maximizing the economic impact of the credit.
Additionally, ACA emphasized the role of carbon capture, utilization, and storage, including enhanced oil recovery, as part of a broader, integrated energy system that supports both emissions reductions and domestic energy security.
A final rule that provides clarity, flexibility, and long-term certainty will allow Section 45Z to deliver meaningful benefits for farmers, energy producers, and the broader U.S. economy.
