Our 15th annual Washington, DC Fly-In & Government Affairs Summit, March 17–18, occurs during a defining moment for ethanol, agriculture, and rural America.
With major decisions surrounding year-round E15 legislation, implementation of the 45Z Clean Fuel Production Tax Credit, and the future of the Renewable Fuel Standard (RFS), we need elected leaders in DC to deliver.
Legislative or Emergency E15 Solution is Critical
Earlier this year, hard-won momentum toward finally passing year-round E15 in Congress—carefully negotiated with refining interests—was derailed. Instead, the House created the “E15 Rural Energy Council” to develop new E15 and small refinery exemption (SRE) legislation. I was recently in DC working alongside our champions on this Council to push for a successful outcome, which is to-be-determined at the time this column was written.
Whether the House Council succeeds or not, recent price spikes from our military conflict with Iran and the toughest economic conditions in a generation harming rural America compel Congress to meet the moment and finally make E15 year-round a reality before the summer driving season. It is a commonsense solution that can immediately boost demand for corn, strengthen farm income, make America more energy secure, and save motorists money at the pump.
If Congress fails to act, we are going to need other solutions involving EPA emergency action or additional state-based opt-outs.
45Z Rules and Farming Practices
In February, Treasury released its much-anticipated proposal to implement the 45Z Clean Fuel Production Tax Credit. While it’s a step in the right direction, more clarity is needed.
Agricultural feedstocks account for roughly half of ethanol’s carbon intensity, making it essential that producers can monetize low-carbon practices to fully unlock the value of 45Z. Treasury must continue working closely with the U.S. Department of Agriculture and the Department of Energy to finalize key tools, including USDA’s Feedstock Carbon Intensity Calculator (FD-CIC) and DOE’s 45ZCF-GREET model.
ACE has played an active role in this process by peer-reviewing and beta-testing the FD-CIC and providing extensive data and feedback. We are also leading a USDA Regional Conservation Partnership Program (RCPP) project to generate real-world data on the carbon benefits of farming practices. This work is specifically designed to address the perceived need for more empirical data on the low-carbon benefits of farming practices to help improve the accuracy of modeling tools. We are hopeful the FD-CIC and 45ZCF-GREET model will reflect the feedback we provided and be finalized soon.
The Future of the RFS
We also do not yet have final 2026 and 2027 RFS blending volumes and EPA has not yet indicated how it will handle reallocation of SREs. EPA must act swiftly to get the RFS back on track and provide certainty to all parties.
The decisions made in Washington in the coming weeks and months will shape the future of ethanol and rural America for years to come, and we need DC to deliver.