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USDA publishes interim rule for crops used as biofuel feedstocks

The USDA has released an interim rule that will help farmers connect climate-smart agriculture practices with the reductions in the carbon footprint of biofuels.

Ag Secretary Tom Vilsack says the rule is directly tied to 45Z guidance issued last week by the U.S. Treasury.

“We’re basically making the next step in this process for Treasury and IRS pretty easy. All they’ve got to do is drop in this tool that we’re creating and this rule that we’ve just announced,” he says.

The interim rule establishes standards to help quantify, track and report the impact of CSA practices associated with the production of corn, soy and sorghum used for biofuel feedstocks. Vilsack says he hopes it gives farmers more clarity.

“When they (farmers) said to us, we would like to see more crops, well, sorghum is now included. When they said we’d like to see the ability to do individual practices, well, that’s now available. And when they said we’d like to be able to have greater certainty in the calculation of the impact of the practices, well now with the calculator, you’ll have greater precision,” he says.

The USDA is publishing a beta version of its Feedstock Carbon Intensity Calculator which Vilsack says should help better illustrate potential reductions in carbon intensity and make biofuel feedstocks more competitive for the development of sustainable aviation fuel.

The biofuels industry is reacting positively to USDA’s announcement.

Renewable Fuels Association President and CEO Geoff Cooper says the guidelines create better structure for properly assessing, valuing and integrating carbon reduction benefits of certain farming practices.

Iowa Renewable Fuels Association Executive Director Monte Shaw says the rule improves upon the previous CSA program by offering more practices and flexibility for farmers.

American Coalition for Ethanol CEO Brian Jennings says the announcement provides greater flexibility for farmers, including the stacking of practices and a departure from the bundled approach previously required under 40B.

American Soybean Association President Caleb Ragland tells Brownfield the announcement will ensure soy has market access for biofuel production and says ASA looks forward to providing feedback for a strong final rule.

The USDA is requesting a 60-day public comment period on the interim rule. Interested parties can weigh in at regulations.gov.

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