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Rehagen: 45Z updates remove key penalty on U.S. soybean growers

The CEO of Clean Fuels Alliance America is encouraged by recent guidance on the Clean Fuel Production Credit.

Donnell Rehagen says updates to 45Z through the One Big Beautiful Bill Act should benefit farmers and biofuel producers.

“Probably the most important was the removal of indirect land use change, which creates a huge penalty for soybean growers, canola growers, here in the United States. It makes their vegetable oils less valuable to produce our fuels out of. So that change was a huge improvement.”

He tells Brownfield the changing of administrations slowed the guidance process.

“It was part of the Inflation Reduction Act passed a year or two before that by Congress, so it’s been in a holding pattern for quite a while.”

The U.S. Treasury and Internal Revenue Service have issued proposed regulations and continue to receive public comments while final rules are pending.