Chairman Willis, Vice Chairman Daniels, Ranking Member Grim,

Thank you for the opportunity to provide written testimony in support of House Bill 773, which expands access to E15 gasoline to Ohioans and drivers across the country while traveling on the Ohio Turnpike. Growth Energy is the nation’s largest association of ethanol producers, representing 98 U.S. plants that each year produce more than 9.5 billion gallons of cleaner burning, renewable fuel, including five of Ohio’s seven biorefineries. We also represent groups such as the Ohio Corn and Wheat Growers Association, working with them and thousands of ethanol supporters across the country to bring better and more affordable choices at the pump, diversify our energy portfolio, create more energy jobs, and sustain family farms.

Today, 98 percent of all gasoline sold in the U.S. contains 10 percent bioethanol. E15, a lower cost fuel containing up to 15 percent bioethanol and approved for use in more than 96 percent of cars on the road today, is now available at more than 5,100 retail locations in 34 states. In Ohio, there are currently only 192 retail fuel locations selling E15; less than four percent of the state’s estimated 5,833 retail fuel locations offer E15. Compare this to Minnesota, with half of Ohio’s population, that has more than 500 retail locations offering E15.

That means, that while Ohio is among the top corn-growing and ethanol-producing states in the country, Ohioans do not have access to more affordable fuel options drivers in other Midwest states have, which is evident in the attached informational sheet recently shared with the U.S. House urging representatives to support pro-E15 legislation.

We applaud Representatives Williams and Klopfenstein for introducing HB 773, which would formally adopt a pro-E15 and pro-Ohio agriculture posture for rest stops and fuel retailers along Ohio’s Turnpike. This is especially important as Ohio corn farmers continue to face higher and higher input costs amid global trade uncertainty and lower commodity prices.

As Representative Williams said during the previous committee hearing, HB 773 “supports Ohio’s agricultural output without placing financial burdens on the state while also helping address the high fuel prices families across the Midwest continue to deal with.” Additionally, we agree with Representative Klopfenstein that the state can expand “access to E15 through one of Ohio’s most visible public-private partnerships: the Ohio Turnpike.”

HB 773 ensures the state of Ohio can do its part to support its agriculture community by promoting the expanded use of E15, a gasoline blend using a higher percentage of corn ethanol. We urge the committee to support this legislation as a means of supporting Ohio’s agriculture and ethanol industries, bolstering thousands of jobs and family farms across the state.

Given our experience with retailers around the country offering ethanol blends, we are happy to assist the committee with technical questions as it considers initiatives that help strengthen domestic demand for Ohio-raised corn and Ohio-made ethanol.

The post Growth Energy Written Testimony in Support of Ohio Turnpike E15 Access appeared first on Growth Energy.

WASHINGTON, D.C.—Today, Growth Energy CEO Emily Skor delivered keynote remarks at the 42nd annual International Fuel Ethanol Workshop & Expo (FEW), highlighting recent victories for America’s ethanol industry and outlining the path ahead for continued growth at home, overseas, and across new transportation markets.

“Ethanol means American energy dominance. Ethanol means lower gas prices and affordability. Ethanol means a stronger farm economy and rural jobs,” said Skor. “This is our time. This is our moment to step up and deliver the solutions that our country needs.”

During her remarks, Skor also pointed to recent victories across policy and market priorities, including the House passage of legislation allowing the year-round, nationwide sale of E15.

“Across our issues and priorities, we are seeing a level of unity across the entire sector that is unprecedented,” said Skor. “Ethanol producers, corn growers, and farm groups—even the oil majors—are all working together in ways we have never seen before.”

“At long last—a bill to allow the year-round, nationwide sale of E15 passed the House on a strong, bipartisan vote,” she added. “That took an all-out sprint on Capitol Hill unlike anything our industry had done before.”

She also highlighted continued progress expanding the retail footprint for E15, opening new export markets, and building demand for ethanol in sectors such as maritime shipping, sustainable aviation fuel, and heavy machinery.

“We aren’t just breaking down market barriers between states or between countries. We want to break down barriers between entire sectors of transportation. We want to get our molecule into engines where we’ve never been before,” said Skor. “Long gone are the days when people thought of ethanol as just for cars and trucks. Now we get to discuss and debate what brand new sector ethanol is going to dominate first—air travel, sea transport or heavy machinery. This is exciting. And it isn’t hypothetical. It’s happening. These sectors have made investments. They need more energy, and cleaner energy, and they need it fast.”

Skor concluded by urging attendees to take action, and to help Growth Energy secure continued growth for the ethanol industry.

“Keep reaching out to your local officials,” she said. “Keep hosting plant tours. And let’s think even closer to home—does your neighbor fill up with E15? Do your family members make sure to look for ethanol? We need to be our own evangelists—from the White House and Capitol Hill to the July 4th barbecues in our backyards.”

This year’s FEW is being held June 2-4 in St. Louis, Missouri. As the largest and longest-running ethanol conference in the world, FEW serves as a premier forum for showcasing new technologies, research, and innovations across the biofuels industry.

Attendees can also connect with Growth Energy throughout the conference at Booth 1119.

Skor’s keynote remarks as prepared for delivery are available here.

The post “This Is Our Time”: Growth Energy CEO Delivers Keynote at Fuel Ethanol Workshop appeared first on Growth Energy.

WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, commended the U.S. Trade Representative (USTR) today after the agency released the initial findings of its Section 301 investigation into Brazil’s unfair treatment of American ethanol. 

USTR specifically referred to Brazil’s failure to allow U.S. producers to compete in its market, noting that “in 2017, Brazil abruptly discontinued its previously balanced tariff treatment of ethanol and has since failed to provide reciprocal tariff treatment for U.S. ethanol exports.” 

“American ethanol producers have been sounding the alarm on Brazil for years,” said Growth Energy CEO Emily Skor. “This is a country that has unfairly used tariff and non-tariff trade measures to severely restrict imports of U.S. ethanol, while enjoying complete and unfettered access to American markets. We appreciate USTR recognizing Brazil’s unfair trade advantage arising from its insufficient action on deforestation. We applaud USTR for continuing to press Brazil on the issue of fairness and we look forward to reviewing the determination in detail and providing further comments to support the ultimate goal of delivering a level playing field for ethanol in the western hemisphere.” 

Read Growth Energy’s previous comments on USTR’s Section 301 investigation here.  

The post Growth Energy Welcomes USTR Section 301 Determination on Brazil’s Unfair Trade Practices appeared first on Growth Energy.

COLUMBUS, OHIO—Growth Energy, the nation’s largest biofuel trade association, urged Ohio lawmakers today to advance a bill that would give drivers on the Ohio Turnpike greater access to E15, a fuel blend made with 15% homegrown ethanol that sells for $0.30 less per gallon on average and is approved for use in 96% of cars on the road today.  

In comments submitted to the Ohio House Transportation Committee, Growth Energy voiced its support for Ohio House Bill 773, which would require fuel stations on the state turnpike to offer E15 as an option. Ohio Representatives Josh Williams and Roy Klopfenstein introduced the legislation. 

“In Ohio, there are currently only 192 retail fuel locations selling E15; less than four percent of the state’s estimated 5,833 retail fuel locations offer E15. Compare this to Minnesota, with half of Ohio’s population, that has more than 500 retail locations offering E15,” said Growth Energy Senior Vice President Chris Bliley in comments. “That means that while Ohio is among the top corn-growing and ethanol-producing states in the country, Ohioans do not have access to more affordable fuel options that drivers in other Midwest states have.” 

“HB 773 ensures the state of Ohio can do its part to support its agriculture community by promoting the expanded use of E15, a gasoline blend using a higher percentage of corn ethanol,” Bliley added. 

Read Growth Energy’s full comments here. 

About E15 

E15 is a fuel blend made of gasoline and 15% ethanol, typically produced from corn. The U.S. Environmental Protection Agency (EPA) has approved its use in all cars, trucks, and sport utility vehicles (SUVs) made in model year 2001 and newer—representing more than 96% of all vehicles on the road today. E15 can be found at over 5,100 gas stations in 35 states and is legal for sale in every state. On average, E15 saves drivers up to 30 cents per gallon compared to regular, or E10. In some areas, E15 can save drivers as much as a dollar per gallon at the pump.  

To learn more about E15, click here.  

The post Growth Energy Voices Support for Ohio Turnpike E15 Access Legislation appeared first on Growth Energy.

WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, urged the U.S. Treasury Department today to finalize its guidance for the 45Z Clean Fuel Production tax credit in a way that increases flexibility and maximizes the incentive’s impact.

In testimony delivered in a hearing by Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley, the organization commended Treasury’s work so far, while calling on the department to make several other important changes to 45Z’s implementation so that the credit truly captures all the innovation happening in American biorefineries and on American farms.

“American energy dominance runs through our nation’s heartland. A strong, well-implemented 45Z credit can unleash lower-cost fuels, rebuild farm income, and open long-term market opportunities for American manufacturing,” said Bliley. “We applaud the Department and the Trump administration for working to advance this important rulemaking to chart a clear path for billions of dollars in new investments in U.S. energy leadership.”

Specifically, Growth Energy urged Treasury to work in conjunction with the U.S. Department of Agriculture (USDA) and the Department of Energy (DOE) to finalize its changes as quickly as possible; work with DOE to swiftly release targeted updates to the 45ZCF-GREET model and user manual; and allow greater flexibility and efficiency in the credit’s provisional emissions rate process, among other items.

“The President and the administration know that American farmers and ethanol producers are ready to put more American-made fuel into the marketplace, hold down energy costs, and secure American energy leadership,” Bliley added. “Your work to implement this credit and finalize this proposal are critical steps to making that vision a reality.”

The full testimony as prepared for delivery can be found here. Growth Energy also made previous comments on the 45Z Clean Fuel Production tax credit guidance proposal in April. Read them here.

The post Growth Energy Urges Treasury to Maximize Value of 45Z Clean Fuel Production Credit appeared first on Growth Energy.

WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, celebrated House passage of a permanent, legislative fix offering consumers year-round access to lower-cost E15. Approved by a vote of 218 to 203, the bipartisan bill now moves to the Senate, where Majority Leader John Thune has been tapped by President Trump to advance E15 legislation.

“American families are asking for help, and today’s vote brings us one step closer to delivering real savings at the pump,” said Growth Energy CEO Emily Skor. “We’re deeply grateful to bipartisan lawmakers from across the nation who always stood strong and rebuffed pressure to protect refinery profits at the expense of American consumers. All eyes are now on the Senate, where we have been working closely with our champions to clear a path forward for year-round E15. The sooner this bill reaches the President’s desk, the sooner we can deliver more savings to more communities in every corner of the country.

“We urge Senate leaders to quickly reject critics who oppose competition at the pump from lower-cost fuel. Year-round E15 simply allows retailers the option to offer a another, less expensive fuel choice to drivers. Now is the time to act.”

The post Growth Energy Celebrates Legislative Victory for Lower-Cost E15 appeared first on Growth Energy.

Growth Energy CEO Emily Skor submitted the following letter to the editor in response to a recent WSJ editorial about ethanol and E15.

In a flagrantly misleading May 11 opinion piece, “An Ethanol Extortion Play,” the Wall Street Journal editorial board again makes it clear that it cares more about protecting margins for a few oil refineries than allowing competition at the pump that can protect drivers from volatile global oil prices.

Specifically, the editorial attacks bipartisan efforts in Congress to allow year-round sales of E15. Never mind the fact that E15 reduces emissions that cause smog, or that the U.S. blew past the so-called “blend wall” years ago. Never mind that the vast majority of existing fuel infrastructure can be used for E15 the same way it is for E10, or that E15 is approved for 96% of vehicles on the road today. And never mind that the vast majority of the fuel supply chain—including most refiners and fuel retailers—support the bill to lower gas prices.

Ultimately, the most important point here is one the editorial board completely ignores—E15 sells for less and saves consumers money. If Congress finally approves year-round E15, it doesn’t mandate anything. It allows retailers the choice to offer consumers a lower-cost fuel option.

The Wall Street Journal can play games to confuse people, but it can’t argue with the signs in front of any fuel station offering E15 at a steep discount to E10. Congress should remember that when it votes on year-round E15 this week.

The post E15 Sells for Less and Saves Consumers Money: Growth Energy’s Response to Latest WSJ Editorial on Ethanol appeared first on Growth Energy.

WASHINGTON, D.C.—Members of Congress and leaders from several agricultural and biofuel organizations gathered outside the Capitol today to call on the U.S. House of Representatives to pass legislation that will allow for the sale of fuel with 15% ethanol blends, often referred to as E15, all year long.

A vote is scheduled for Wednesday in the U.S. House of Representatives on H.R. 1346, the Nationwide Consumer and Fuel Retailer Choice Act, which would eliminate an outdated regulation restricting year-round sales of E15.

Several legislative supporters of the bill said now is the time to act on the legislation.

“When I first came to Congress, I made a promise to the people I represent—especially our farmers—that I would work across the aisle to deliver real results,” said Rep. Nikki Budzinski (D-Ill.). “Today, we’re one step closer to providing the certainty and relief they’ve been waiting for with the passage of year-round E15. Expanding access to E15 is a win for everyone: it strengthens markets for homegrown corn, lowers costs at the pump, and supports jobs, investment, and economic growth across rural America. Now is the time to finish the job, and I urge all of my colleagues to come together and deliver this victory for the American people.”

Budzinski’s comments were echoed by her colleagues.

“Right now, Congress has the power to lower prices at the pump for consumers, expand much-needed market access for biofuel producers, and unleash America’s energy independence—all by passing my Nationwide Consumer and Fuel Retailers Choice Act. It is past time for Congress to do the right thing and join me in making nationwide, year-round E15 a reality,” said Rep. Adrian Smith (R-Neb.).

“America needs year-round E15. Consumers, farmers, and working families need year-round E15. At a time when families are getting squeezed at the pump and farmers are facing uncertainty from every direction, this is one of the clearest bipartisan wins in front of Congress. Year-round E15 means more homegrown American energy, lower costs, and stronger markets. I’m proud to stand with colleagues on both sides of the aisle on this issue and it’s time for Congress to get this done,” said House Agriculture Committee Vice Ranking Member Rep. Shontel Brown (D-Ohio).

“Permanent year-round E15 availability provides lower costs at the pump, provides more domestic markets for our farmers and ethanol producers, and ensures America can move toward energy independence again,” said Rep. Randy Feenstra (R-Iowa). “I have always been a strong advocate for Iowans and for ensuring our families, farmers, and producers are represented at the policy table. Passing legislation that provides the certainty of year-round E15 will promote homegrown energy that supports our farmers and rural energy producers. I am grateful to my colleagues, industry leaders, and the farmers who have stood behind this effort. The vote on this legislation will end over a decade of Washington gridlock and address the critical needs of the American farmer. I am proud to support legislation that ensures families can fill up their tanks with lower-cost fuel, while providing our farmers with an expanded market for their products. From the field to the fuel pump, this policy provides a pathway to promote American energy dominance while reducing costs for families.”

“Year-round E15 is a commonsense win for farmers and for families facing high gas prices. We should be expanding markets for American agriculture, not creating more delays or uncertainty through political games or unnecessary studies. I’ll keep working to get this done and finally deliver certainty for our producers and lower prices at the pump,” said Rep. Eric Sorensen (D-Ill.). 

“The benefits of year-round E15 are clear: lower prices for American families, consistent markets for our framers, and increased energy independence,” said Rep. Michelle Fischbach (R-Minn.). “It’s time we pass this legislation and finally provide the permanent, common-sense certainty our farmers and drivers deserve.”

A farmer also spoke about the benefits of E15 during the press conference.

“Corn farmers want to sell their products at a fair price in the marketplace, and year-round E15 grows that market for us,” said Ohio farmer and National Corn Growers Association (NCGA) President Jed Bower. “Expanding access to E15 helps create a stronger, more reliable domestic market for corn. It’s a practical way to help absorb U.S. corn supply and boost demand for ethanol and for corn.”

E15, sometimes seen as UNL 88 at the pump, can be used in all cars made in 2001 and newer, representing  96% of the vehicles on the road today. The fuel blend can save consumers up to 30 cents per gallon on average and estimates show that it could save drivers more than $150 million this summer alone.

Several people at the press conference pointed to the economic hardships facing farmers as well as rising gas prices as reasons to pass the legislation.

American Farm Bureau Federation President Zippy Duvall said, “Year-round E15 is a win-win for drivers and farmers. Ethanol blended fuels offer substantial savings at the pump and create vital markets for farmers who are struggling with historically low corn prices. This is an opportunity for Congress to address several important issues with one piece of legislation.”

“Gas prices are at their highest level in four years, and families need relief now,” said Growth Energy CEO Emily Skor. “Year-round E15 will deliver more savings for more Americans, and it can do so right away. If we’re serious about lowering fuel prices nationwide, we need a permanent solution that expands access to E15 across the U.S., instead of in just a few regions.”

“With a vote within reach, family farmers are counting on Congress to deliver year-round, nationwide E15,” said Rob Larew, president of the National Farmers Union. “This is commonsense, bipartisan policy that puts more American-grown fuel in the tank, strengthens rural economies, and brings real relief at the pump for families feeling the pinch of higher energy costs. A vote for E15 is a vote for farmers, consumers, and energy independence. We urge lawmakers on both sides of the aisle to get it done.”

Others emphasized the hard work that has gone into getting the legislation across the finish line.

“Allowing year-round nationwide access to E15 would help lower pump prices at a time when American families really need that relief,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper. “This legislation represents a compromise that was carefully negotiated by lawmakers, farmers, ethanol producers, fuel retailers, oil refiners, and many others across the supply chain. It has broad-based support, and now is the time to get this done.”

“This has been a long-running issue, National Sorghum Producers CEO Tim Lust noted. “But the important thing is that momentum is still there. The legislation is now moving forward on its own track, and there is a real opportunity to finally get this done.”

The post Leaders Cite Economic Hardship, Gas Prices as They Call for E15 Passage appeared first on Growth Energy.

WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, announced today that the total number of retail locations selling E15—a more affordable fuel blend made with 15% American ethanol—now totals more than 5,000 stores, marking a new milestone in E15 availability.

“More and more fuel retailers across the U.S. are offering E15 because they know it’s a more affordable fuel option that their customers can rely on,” said Growth Energy CEO Emily Skor. “With 5,000 stores now selling E15 across the U.S., more drivers than ever are able to take advantage of E15’s lower prices. We congratulate every fuel retailer that’s made this milestone possible, and look forward to watching the total E15 store count continue to climb as retailers invest in ways to deliver better, more affordable fuel options.”

Since 2020 the number of stores selling E15 in the U.S. increased at an annualized rate of 15%. Between 2024 and 2025, the number of E15 stores jumped from 3,808 to 4,736, a total of more than 900 new stores representing an increase of 24% in that period. This increased rate of adoption was achieved despite the fact that, today, E15 can only be sold all year long if the U.S. Environmental Protection Agency (EPA) issues a waiver for retailers to do so. This is an outdated regulatory requirement that’s still on the books from a 35-year-old law that was enacted before E15 was first introduced as a fuel option.

“We’ve seen robust growth in E15 availability even with these outdated waiver-to-waiver regulations,” Skor added. “At the current rate of E15’s expanding retail footprint, we expect to see more than 1,200 additional retail locations begin to sell E15 in 2026. If Congress can deliver a permanent fix for year-round E15, however, that number would be exponentially higher. This is why it’s so important for Congress to take action and vote in favor of year-round E15 now—more consumers deserve access to E15’s cost savings, and that’s exactly what this greater regulatory certainty would provide.”

Congress is set to vote on a bill that would allow for the year-round sale of E15 on May 13. Supporters of E15 should visit growthenergy.org/E15Now and tell their elected officials to support the measure and finally make E15 available all year long.

The post Growth Energy Announces that E15 Is Now Offered at 5,000 Locations across the U.S. appeared first on Growth Energy.

WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, today released new data showing that fuel retailers sold nearly 2.5 billion gallons of E15 in 2025, underscoring the growing demand for a lower-cost fuel option that could save drivers more than $150 million this summer alone.  

E15, sometimes seen as UNL 88 at the pump, is a fuel blend made with 15% American ethanol that can be used in 96% of all cars on the road today. The fuel blend can save consumers up to 30 cents per gallon. 

“Fuel prices are at their highest level in four years, and families need relief. E15 offers an immediate, affordable solution, and that’s why it’s so important for Congress to act now on legislation that will make E15 accessible year-round,” said Growth Energy CEO Emily Skor. 

Earlier this year, the U.S. Environmental Protection Agency issued an emergency waiver allowing for summer sales of E15. The temporary waiver ensures that retailers, refiners, and biofuel producers have the certainty they need to keep E15 on the market for the time being, but it falls short of the permanent fix retailers need to bring lower-cost E15 to more fueling locations.  

“Retailers sold nearly 2.5 billion gallons of E15 last year because consumers are actively looking for lower-cost fuel options,” Skor added. “But without policy certainty, retailers can’t deliver those savings to new markets and more consumers.” The U.S. House of Representatives is expected to vote next week on legislation that would finally allow year-round E15 sales nationwide, eliminating the need for temporary waivers and unlocking expanded access to lower-cost fuel options for consumers.  

The figures are based on data from over 2,500 retail stations across the U.S. that sell E15. Growth Energy encourages American drivers to reach out to their elected officials today and tell them to support year-round E15. Visit growthenergy.org/E15Now to learn more. 

The post Growth Energy: E15 Could Save Consumers More than $150 Million This Summer appeared first on Growth Energy.

TOPEKA, KAN.—Growth Energy, the nation’s largest biofuel trade association, commended the Kansas legislature and Kansas Governor Laura Kelly for enacting an incentive for fuel retailers in the state to sell E15, a fuel choice made with 15% American-made ethanol that costs less and can be used in 96% of all cars on the road today. 

“Kansas is the latest addition to a growing list of states taking action to save their constituents money by increasing E15 availability,” said Growth Energy CEO Emily Skor. “Drivers, farmers, and fuel retailers will all benefit from this incentive. We applaud Gov. Kelly, and the Kansas lawmakers and state biofuels and corn organizations who championed this legislation and worked together to see it signed into law. While this is welcome news for Kansans, we hope that Congress is paying attention and delivers the same savings to all Americans by passing a nationwide, year-round fix for E15 as soon as possible. Consumers can’t wait any longer.” 

Learn more about the Kansas E15 tax incentive here. To learn more about E15, click here. 

The post Kansas E15 Incentive Will Lower Prices, Support Farmers appeared first on Growth Energy.

Dear Members of Congress,

On behalf of a broad and diverse coalition representing fuel refiners, ethanol producers, agriculture stakeholders, and fuel retailers, we write to express our strong support for the bipartisan amendment #289 to the House Farm Bill that would allow for the year-round sale of E15 fuel and provide reasonable, targeted reforms to the Small Refinery Exemption process under the Renewable Fuel Standard, which was introduced by Representatives Michelle Fischbach, Randy Feenstra, Stephanie Bice, and Adrian Smith.

This amendment reflects a unique area of agreement across the fuel and agriculture supply chain. While our industries do not always see eye to eye, we are united in the belief that these policy reforms provide needed certainty, preserve consumer choice, and support
agriculture and energy economies alike.

Importantly, this amendment does not mandate the sale of E15. Instead, it simply allows retailers to offer E15 to consumers during the summer months if they choose to do so. Maintaining access to E15 year-round empowers consumers at the pump with more options, particularly during periods of tight supply and high fuel costs, while allowing refiners and retailers to meet the demands of the market.

Year-round E15 sales also provide clarity and stability for farmers and biofuel producers who rely on consistent market access for the crops they grow and the fuels they produce. Predictable policy signals reduce risk, encourage investment, and help sustain jobs throughout rural communities without imposing new regulatory burdens.

In addition, the amendment’s reasonable reforms to the Small Refinery Exemption process will help restore transparency and predictability for all parties subject to the Renewable Fuel Standard. A clear and consistent approach ensures that exemptions are applied as Congress intended, while avoiding uncertainty that can disrupt fuel markets, undermine compliance planning, and create volatility for producers and consumers alike.

Taken together, these provisions will help enhance fuel supply, promote competition, and help lower costs for American families, while providing needed certainty to farmers, refiners, ethanol producers, and fuel retailers. At a time when consumers are acutely sensitive to energy prices, this amendment represents a pragmatic solution that balances energy affordability, rural economic strength, and regulatory certainty.

We respectfully urge you to support this bipartisan Farm Bill amendment, encourage its inclusion as the legislation advances, and support final passage of the Farm Bill on the House floor. We stand ready to work with you to support policies that promote consumer
choice, economic stability, and a reliable fuel supply for the nation.

Thank you for your consideration and for your continued leadership on these important issues.

The post Broad Coalition Urges Congress to Advance Year-Round E15 in Farm Bill appeared first on Growth Energy.

Dear Secretary Bessent:
Thank you for the opportunity to comment on the Internal Revenue Service’s (IRS) proposed rulemaking to implement the Section 45Z Clean Fuel Production Credit (REG-121244-23) (“Proposed Rule”). We applaud the progress IRS has made in advancing this robust
regulatory package and supporting the efficient, effective, and science-based implementation of the Section 45Z Clean Fuel Production Credit (“45Z Credit”).

Growth Energy is the nation’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9.5 billion gallons of low-carbon, renewable fuel; 131 businesses associated with the production process; and tens of thousands of biofuel supporters around the country. Our members are critical to the supply of biofuel in the United States and have substantial interests in sound implementation of the 45Z Credit. Our industry is poised to assist the administration’s energy goals by providing low-cost, innovative, and American-made fuel as we remain committed to helping our country diversify its energy portfolio and provide consumers with better and more affordable choices at the fuel pump.

I. The 45Z Credit is Critical to the Ethanol Industry, the U.S. Agricultural Economy, and U.S. Energy Security.
For over two decades, the U.S. ethanol industry has played a substantial role in the U.S. economy and energy security. In 2025, U.S. ethanol production hit record highs of over 16.49 billion gallons, 14.34 billion of which were blended into motor gasoline for U.S. consumption.

These gallons displace petroleum gallons from the transportation fuel supply, thereby contributing to U.S. oil reserves in times of surplus and reducing dependence on foreign oil in times of shortage. As the Department of Energy (“DOE”) acknowledges, ethanol “strengthens national security by increasing resilience to natural disasters and fuel supply disruptions.” In addition, U.S. ethanol reduces consumer costs at the pump by 77 cents/gallon on average, for a total savings of $95.1 billion per year for U.S. consumers.4 U.S. Department of Agriculture
(“USDA”) analysis also shows that ethanol blending reduces price volatility, as a 10 cent/gallon
increase in crude oil prices would only result in increases of 2.8 cents/gallon over the short term
or 4.2 cents/gallon over the long term for E105 at the pump.6
Further, over 2 billion surplus ethanol gallons are sent to export markets including
Canada, Mexico, the United Kingdom, and the European Union. These energy exports
strengthen national security and diplomacy positions while simultaneously injecting wealth into
the U.S. economy.
In total, the ethanol industry contributed over $50 billion to U.S. GDP in 2025, generated
over $28 billion in employment-related income for workers, and supported more than 316,000
jobs in 2025.7
The industry also provided more than $10 billion in tax revenues to federal and
state governments.8
The majority of these benefits arise in the agricultural sector across
America’s heartland.9
A strong and stable agricultural sector sets the foundation for a strong and
stable American economy by reducing costs of key commodities across extensive supply
chains.10
The 45Z Credit plays a vital role in incentivizing innovation in the U.S. ethanol industry,
and Growth Energy applauds the IRS on issuing this Proposed Rule. In this letter, we identify
several key recommendations for the agency to further improve upon this rule. We encourage
the IRS to swiftly finalize the proposed regulations consistent with the adjustments suggested
below.
II. The Proposed Rule Takes Meaningful Steps to Further Recognition of Farm
Practices But Should Provide Greater Certainty in the Near Term.
The U.S. has the most advanced agricultural sector in the world, with farmers that are
constantly innovating and developing new techniques and practices to increase efficiency and
reduce emissions. Growth Energy thanks the IRS and its partner agencies for the steps it has
taken to recognize American innovation in the fields through the development of a 45ZCF FDCIC module, to be used as an input to the 45ZCF-GREET model. However, we urge the IRS to adopt reasonable interim measures to allow taxpayers to access emissions reductions from farm
practices swiftly and without unnecessary administrative delays.
The Proposed Rule sets forth a multi-step, multi-agency process for implementing farm
practices, in which USDA would first finalize the USDA FD-CIC module, then DOE would
adopt a “45Z-specific” version of that FD-CIC module (“45ZCF FD-CIC”) within the 45ZCFGREET model, then IRS would publish “additional guidance” enabling taxpayers to use the
45ZCF FD-CIC module.11 This multilayered approach would delay taxpayers’ access to farm
practice incentives. As the IRS acknowledges, the USDA FD-CIC module is itself “undergoing
testing, peer review, and public comment” which will ensure that the final version of USDA FDCIC is robust and highly credible upon publication. If 45ZCF FD-CIC remains unavailable at
the time the IRS finalizes this Proposed Rule, IRS should allow taxpayers to utilize the final
USDA FD-CIC module to calculate credit amounts until such time that 45ZCF FD-CIC is
finalized.
Moreover, USDA has already published final technical guidelines for quantifying,
reporting, and verifying emissions reductions from farm practices.12 These guidelines were
adopted through a public notice and comment process and were specifically designed to “allow[]
for the differentiation and quantification of carbon intensities associated with the production of
farm crops used as biofuel feedstocks, through USDA FD-CIC, upon its finalization.”13 In
finalizing the Proposed Rule, the IRS should incorporate these USDA technical guidelines by
reference so that taxpayers may begin utilizing USDA FD-CIC, and later 45ZCF FD-CIC,
immediately upon the finalization of those modules without any further action needed from the
IRS.
Lastly, we emphasize that the four practices referenced in the Proposed Rule—no till,
reduced till, cover crops, and nutrient management14—is far from an exhaustive list of farm
practices that can be reliably quantified today. The 45ZCF FD-CIC module should include at
least the full scope of practices included in USDA FD-CIC, and both modules should be
regularly reevaluated for expansion into new farm practices as farmers continue to innovate. In
particular, the IRS should coordinate with USDA to include emissions reductions from biological
solutions (including biostimulants, biofertilizers, and biopesticides) that enhance soil health,
improve nutrient uptake, and increase crop yields. Often, best farm practices will vary across
individual farms due to the multitude of factors that impact crop production. It is therefore
critical that farmers have flexibility to apply those farm practices that work best for their unique
operations, leading to greater incentive and participation.

III. IRS Should Coordinate with DOE and Other Partner Agencies to Swiftly Release
Targeted Updates to the 45ZCF-GREET Model.

Though the 45ZCF-GREET model remains the best available science in lifecycle analysis
modeling, we encourage the IRS and its partners at the DOE to release certain targeted updates to
the model and the accompanying User Manual to further improve the current model.
a. The 45ZCF-GREET User Manual should clarify that taxpayers may calculate
emissions rates without inclusion of indirect land use change (“iLUC”), though
the 45ZCF-GREET model may still include iLUC as a separate line item.
IRS should work efficiently with the DOE to adjust the User Manual to clarify the
process for excluding emissions estimates attributed to indirect land use change (“iLUC”) from
45Z Credit calculations. As Growth Energy and other commenters have noted in the past,
assessments of iLUC emissions in lifecycle assessments are inherently highly speculative and
often fraught with incorrect assumptions. Congress appropriately addressed this issue through
amendments to the 45Z Credit in the One Big Beautiful Act (“OBBA”), clarifying that emissions
rates “shall be adjusted as necessary to exclude any emissions attributed to indirect land use
change” for all fuel produced after December 31, 2025.15
The most straightforward and efficient method to implement Congress’ directive is to
adjust the User Manual to clarify that taxpayers may simply exclude the values associated with
iLUC emissions when calculating overall CI scores. The 45ZCF-GREET model should continue
in the near-term to calculate iLUC separately, which may remain necessary for fuels produced
prior to December 31, 2025. In addition, while the 45ZCF-GREET model’s iLUC calculations
still represent an overestimate compared to real world impacts, the model remains the product of
rigorous, peer-reviewed technical analysis from multiple federal agencies. Preservation of this
work would provide a useful data point which other programs currently relying upon outdated
iLUC modeling, such as EPA’s Renewable Fuel Standard and various state clean fuels standards,
could and should draw upon in updating their methodologies.
Because the 45ZCF-GREET model helpfully breaks out the emissions calculation
associated with iLUC as a separate line item, it can readily be deducted from the overall
emissions calculation. This structure is also most consistent with the text of Congress’ OBBA
amendments, which describe the exclusion of iLUC as an “adjustment” made to the emissions
rate.16 Clarifying in the User Manual that taxpayers may exclude iLUC in this manner would
provide much-needed certainty in the near-term for determining 45Z Credit eligibility.
b. The User Manual should allow producers to fully account for CCUS-related
emissions reductions verified using a Section 45Q lifecycle analysis.
Ethanol producers are employing innovative carbon capture, utilization, and storage
(“CCUS”) technologies across the industry that create both value and efficiencies in the use of
carbon dioxide for food and beverage products while reducing emissions. Approximately 25%
of the ethanol industry already captures carbon dioxide, and a growing number of facilities plan to install the technology in the near future. Carbon dioxide captured from ethanol facilities is
used in a wide and growing variety of applications.17
As the final rule is developed, we encourage the IRS and DOE to ensure that the 45Z
framework accurately reflects the full range of emissions-reducing activities being undertaken by
ethanol producers. Regulatory approaches that account for the breadth of verified, real-world
emissions reductions achieved across the industry will support the program’s objectives and
encourage continued investment in clean fuel production.
c. The 45V rules for EACs for renewable electricity address concerns not applicable
in the 45Z context and should not apply.
An updated 45ZCF-GREET model should not fully mimic the rules established under
section 45V for energy attribute certificates (“EACs,” more commonly referred to as Renewable
Energy Certificates (“RECs”)) for renewable electricity,
18 because, unlike in hydrogen
production, induced grid emissions are not a “significant” indirect emission within the meaning
of Clean Air Act § 211(o)(1)(H) and 26 U.S.C. § 45Z(b)(1)(B) for clean fuel production.
The 45V rules were adopted specifically for the electrolytic hydrogen context which
requires substantial electricity resources. Notably, the “three pillars” of “deliverability,”19
“temporal matching,”20 and “incrementality”21 were included not to address direct emissions
from the generation of electricity actually used in the production process, but rather to address
indirect “induced” emissions from a concern that electricity demand from hydrogen projects
would be so substantial that it would materially alter the mix of electricity generation on the grid
as renewable resources are diverted in bulk towards hydrogen production.
22
In contrast, the modest quantities of electricity used in biofuel production bears no
semblance to the quantities of electricity used in electrolytic hydrogen production. As such, the
risk that the carbon intensity reductions claimed by biofuels producers through renewable RECs
may be offset by induced indirect emissions from the electricity grid is therefore insignificant, or
even non-existent.
Section 45Z’s definition of “lifecycle greenhouse gas emissions”—incorporating the
same definition from Clean Air Act § 211(o)(1)(H)—includes only those indirect emissions
which are “significant.”23 Neither Treasury nor DOE nor EPA has established that biofuels
producers’ use of RECs has any indirect emissions impacts, and certainly none that would rise to
the level of “significant.”
As the 45V rules for RECs have no statutory basis as applied to 45Z, have no material
emissions benefit, and would be a burdensome restriction on biofuels producers’ ability to deploy cost-effective carbon-intensity reduction strategies, the IRS should not finalize identical rules for
the 45Z Credit. At a minimum, Treasury should clarify that annual matching of RECs to clean
fuel production is appropriate under 45Z for the full duration of the credit, and that hourly
matching requirements established for REC use in hydrogen production after 2029 do not apply
to clean fuel production under 45Z.
d. An updated 45ZCF-GREET model should include additional ethanol feedstocks
and process emissions reductions strategies.
Growth Energy urges the IRS, in coordination with the DOE, to expand the ethanol
pathways covered by the 45ZCF-GREET model. Growth Energy members today are producing
low-carbon renewable fuels from wheat slurry, sorghum oil, and proso millet, demonstrating that
each of these pathways are sufficiently developed to be included in the 45ZCF-GREET
emissions rate table. IRS and DOE should also adopt a generic U.S. grain and starch pathway
for ethanol produced in a fermentation process as a catch-all for feedstocks that are not otherwise
specified in the rate table. Such a category would help 45ZCF-GREET stay up to date as
producers increasingly innovate with new feedstocks. Inclusion of each of these feedstock
classifications in the rate table is especially critical due to delay concerns with the proposed PER
petition process, as discussed further below.
Further, 45ZCF-GREET should be expanded to recognize the use of additional process
energies. For example, low-carbon natural gas is produced utilizing CCUS at the upstream point
of production to significantly reduce the lifecycle emissions of the natural gas product.24 As with
renewable natural gas (“RNG”), low-carbon natural gas provides a lower-emissions alternative to
the use of conventional natural gas at biorefineries, and thereby reduces the emissions rate of fuel
produced at the biorefinery. Other examples of low emissions process energy include waste
wood and landfill gas. An updated 45ZCF-GREET model should include options to designate
these sources as process energy.
IV. Greater Flexibility and Administrative Efficiency Is Needed in the Provisional
Emissions Rate (“PER”) Process.
Producers of transportation fuels for which an emissions rate has not been established
under the 45ZCF-GREET model may file a petition to establish a provisional emissions rate
(“PER”).25 This PER petition process is intended to incentivize producers and facilities that can
demonstrate, as a technical matter, lower emissions rates than those included in the categorical
rate table. It is also intended to be a swift and efficient process to provide certainty and
investability to innovative producers reliant upon the 45Z Credit. While Growth Energy thanks
the IRS for addressing the urgent need for additional clarity on the PER petition process in the
present rulemaking, the approach set forth in the Proposed Rule is unnecessarily burdensome and
undercuts both of these core purposes of the PER mechanism.
a. The PER petition process should allow producers of fuels included on the
emissions rate table and specific efficient facilities to demonstrate process
efficiencies that reduce emissions rates. Contrary to the 45Z Credit’s statutory purposes to incentivize innovation and emissions
reductions, the Proposed Rule asserts that the DOE and IRS will deny any “PER petition for a
type and category of fuel included in the applicable emissions rate table” and will also deny any
“PER petition based on a facility rather than a type or category of fuel.”26 The Proposed Rule
further defines both “type of transportation fuel” and “category of transportation” broadly, such
that “type” refers to “a particular kind of transportation fuel” and “category” refers to “the
unique primary feedstock and pathway (also known as production process) used to produce a
type of transportation fuel.”27 Thus, IRS asserts that “fermentation of U.S. corn starch ethanol”
is a single “type and category” of transportation fuel.28
Restricting the PER petition process in this way will prevent efficient producers from
accessing the intended incentives for reducing the carbon intensity of their fuel. For example,
some Growth Energy members deploy unique technologies in processing corn starch ethanol that
are not currently encompassed in 45ZCF-GREET to lower their ethanol’s carbon intensity.
Under the Proposed Rule, the PER would be unavailable for them to more accurately calculate
their 45Z Credit eligibility because the U.S. corn-starch ethanol “type and category” is already
encompassed within existing emissions rate tables. Congress included a PER process to spur
investments in efficiency improvements, including by experimenting with innovative emissions
reduction technologies and practices at specific facilities; the Proposed Rule would do the exact
opposite.
The most straightforward adjustment to enable the PER petition process to properly
incentivize efficient producers is to remove the restrictions on types and categories included in
the rate table and on specific facilities. Alternatively, IRS could adopt narrower definitions for
“type” and “category.” As Growth Energy has previously explained, a “category of
transportation fuel” in the context of the 45Z Credit is best read to refer not only to the feedstock
(e.g. corn starch) and general production process (e.g. fermentation), but rather to each distinct
combination of factors that impact carbon intensity, including facility-specific process
technologies and agricultural practices.29
b. IRS should remove unnecessary and time-consuming steps from the PER petition
process.
The PER petition process should be nimble, predictable, and efficient to provide
producers with certainty early in the development process. Instead, under the Proposed Rule’s
framework, producers must obtain approvals from both the DOE (to establish an emissions value
(“EV”)) and the IRS (to approve the PER petition) before receiving a PER.
30 Growth Energy
encourages IRS to finalize the § 1.45Z-2(f)(5) deemed accepted provision; however, it remains
unclear how a DOE-dependent PER petition process would be any quicker or less onerous than
establishing a final emissions rate through DOE updates to the 45ZCF-GREET model. Indeed, to date DOE has not issued guidance addressing the 45Z Emissions Value Request Process, and
has indicated that it “will not issue emissions values until after such guidance is published.”31
We urge IRS to streamline the PER petition process by allowing for third-party
verification as an alternative to a DOE-calculated EV. The Proposed Rule already incorporates
third-party verification in its certification process for SAF emissions rates,32 as well as the
emissions rate safe harbor for non-SAF fuels.33 Numerous other regulatory programs also rely
on third-party verification to reduce agency burden and delay, including the California LCFS
Standard34 and ICAO Carbon Offsetting and Reduction Scheme for International
Aviation (CORSIA)35 for determining the lifecycle emissions of fuel pathways, and the EPA
Renewable Fuels Standard for validation of certain other aspects of registering and reporting
renewable fuel production. 36 IRS should similarly allow producers to rely upon certifications
obtained in substantially the same form and manner as those described in proposed § 1.45Z-5 to
establish an EV for use in the PER petition.
Moreover, IRS should allow producers to initiate the PER petition process at earlier
stages in project development. The Proposed Rule would require PER applicants to provide
“[s]pecific sections of the Class 3 front-end engineering and design (FEED) study (or studies) …
or similar indication of project maturity such as project specification and cost estimation
sufficient to inform a final investment decision, as determined by the DOE, that has been
completed for each qualified facility at which the applicant produces the eligible fuel.”37 This
requires producers to conduct the level of FEED analysis generally necessary to make a final
investment decision (“FID”) prior to even applying for an EV from DOE. And, as discussed
above, subsequent to obtaining an EV from DOE, the producer must still petition for and obtain a
PER from the IRS. Since the result of a PER determination may be material to the FID, projects
will be left in limbo for months or years because, despite completing a FEED study, the project
cannot proceed with FID until first DOE evaluates and issues an EV and then IRS accepts a PER
petition.
To mitigate this potential for delay, we encourage IRS to allow producers to initiate the
EV and PER petition process using Class 4 estimates or other indications of project maturity that
can be demonstrated prior to a project approaching FID. At a minimum, Class 3 FEED or
equivalent should not be required until the PER petition before IRS, rather than the initial DOE
EV request.
Lastly, Growth Energy supports the relation back of PERs and other newly-established
emissions rates to January 1, 2025 to mitigate the impacts of delays in the PER petition process.
38 However, while helpful, this does not obviate the need for efficiency in the petition
process, as establishing an emissions rate early in the development process can be critical for
producers to attract investment. At a minimum, IRS should coordinate closely with DOE to open
the EV request process as soon as possible.
V. Growth Energy Supports the Proposed Definition of Qualified Sale and Requests
Clarification on Documentation Requirements.
Growth Energy thanks the IRS for clarifying that “qualified sale” includes “the sale of
fuel to an unrelated person that subsequently resells the fuel in its trade or business,” and
encourages the IRS to finalize this proposed definition.39 We further encourage IRS in the final
rule to clarify documentation sufficient to establish a “qualified sale” in a manner consistent with
the practicalities of the existing fuel distribution market.
First, IRS should clarify that sales contracts between the taxpayer and third parties are
sufficient to substantiate qualified sales under the proposed § 1.45Z-4(g)(3) safe harbor. This
safe harbor provides that a taxpayer may demonstrate a “qualified sale” by obtaining from the
purchaser a certificate “prior to or at the time of sale” asserting that the purchaser is unrelated to
the taxpayer and that the transportation fuel will be used by the purchaser in one of three
qualifying ways.40
However, alternative documentation to the prescribed model certificate should be
sufficient to establish the safe harbor, particularly where the information specified in the model
certificate is largely duplicative of that in standard sales documentation such as invoices and
trade confirmations already utilized by market participants. Specifically, the Proposed Rule
indicates that the IRS “may provide other methods through which a taxpayer may substantiate a
qualified sale” other than the qualified sale model certificate in § 1.45Z-4(g)(3)(ii).
41 We urge
the agency to allow taxpayers to substantiate a qualified sale and establish the safe harbor by
providing either: (1) sales contracts and any supplemental documentation from which the
existence of a qualified sale may be ascertained, or (2) certifications or sales contracts and
supplemental information from terminals where multiple taxpayers’ fuel products have been
commingled. Terminal operators’ reconciliation of sales volumes should also be sufficient to
establish a safe harbor in lieu of obtaining documentation from the purchaser.
For most transactions, it will be apparent from the sales contract or trade confirmation
that a transaction is a qualified sale. On rare occasions where a sales contract may be incomplete
or otherwise lack information relevant to the qualified sale criteria, taxpayers may choose to
provide supplemental information, such as a taxpayer’s certification that the purchaser is an
unrelated entity. We therefore encourage the IRS to clarify that various sales documentation may
be used to substantiate a qualified sale for safe harbor purposes, consistent with the statutory and
regulatory definitions.Further, IRS should allow certification of qualified sales for the safe harbor to apply
retroactively for any sales made between January 1, 2025 and the date that this Proposed Rule,
including the § 1.45Z-4(g)(3)(ii) model certificate, is finalized.
Relatedly, Growth Energy supports and encourages IRS to finalize the addition of ASTM
D8651 for undenatured ethanol within the definition of “low-GHG ethanol,”42 which further
affirms that undenatured ethanol for export may qualify for 45Z Credit as fuel that is “suitable
for use” in highway vehicles or aircraft (or may be blended into such a fuel mixture).43
VI. Prevailing Wage Criteria Should be Flexible to Industry Realities.
The prevailing wage criteria are important components of the 45Z Credit; however, as
Growth Energy has explained in prior comments, these criteria should be flexible to the practical
realities of rural markets.
a. Flexibility is needed for rural markets where available workforce is limited.
To claim additional credit for meeting prevailing wage criteria, taxpayers must pay the
wages set by the Department of Labor (“DOL”) under general wage determinations for a
geographic area.44 However, due to the unique geography of biofuels production and the types
of labor required, biofuels producers are encountering situations where there is no DOL-issued
prevailing wage determination or labor classification in the county in which their facilities are
situated despite there being such determination/classification in an adjacent county. We
understand that this may be the case where DOL does not have enough data to publish a
prevailing wage determination or classification for a specific locality.
The current IRS regulations provide that, in such circumstances, taxpayers may request
“supplemental wage determinations” or “additional classifications and rates for those localities
or specific types of labor.45 These additional procedural steps pose multiple challenges that
could be avoided through an easily-administered solution. First, the supplemental wage
determination processes impose regulatory burdens on DOL that may result in untimely
processing of such requests, where it is critical that the biofuels producer has certainty regarding
magnitude of credit eligibility for fuel pricing and other considerations. The regulations provide
that “[t]he Wage and Hour Division will resolve requests for a prevailing wage rate for an
additional classification within 30 days of receipt of the request or will advise the requester
within the 30-day period that additional time is necessary.”46 Despite establishing a presumptive
30-day timeline, however, the rule provides no means of relief to taxpayers if DOL requests an
open-ended amount of additional time or otherwise does not process the request in a timely
manner.
To avoid lengthy delays that can cause significant uncertainty for biofuels producers, the
IRS should amend the regulations to allow taxpayers to use the relevant prevailing wage
determination or labor classification from the nearest locality when DOL is unable to provide one within the allotted 30-day timeframe. Doing so would align with the IRS’ treatment of
offshore facilities, for which “in lieu of requesting a supplemental wage determination” a
taxpayer “may rely on the general wage determination for the relevant category of construction
that is applicable in the geographic area closest to the area in which the qualified facility will be
located.”47 IRS can apply this same approach to onshore facilities in geographic areas lacking
applicable wage determinations. This approach would still allow DOL to make determinations
once it has sufficient data to do so while providing taxpayers with a safe harbor for claiming the
prevailing wage tax credit in cases where DOL is unable to provide such determinations within
the prescribed timeframe.
b. IRS should ensure compliance mechanisms are reasonable and should afford
flexibility to taxpayers in correcting unintentional non-compliance.
Growth Energy understands and appreciates the importance of including compliance
mechanisms to ensure that prevailing wages are actually paid to laborers when claimed by a
taxpayer. The current regulations establish penalties for failure to satisfy the prevailing wage
requirements (and failure to correct inadequate payments).48 These regulations further establish
heightened penalties if the IRS determines that there was an intentional disregard of the
prevailing wage requirements.49 To make this determination, the IRS considers various facts and
circumstances, including (among others) whether taxpayers conducted reviews on a quarterly or
more frequent basis as to (a) what the prevailing wage classifications are, (b) what the prevailing
wage rates are, and (c) whether payroll reflects proper payment of prevailing wages.50
While Growth Energy appreciates the importance of reviewing such data on a periodic
basis to ensure and demonstrate compliance, quarterly reviews impose an unnecessary burden on
taxpayers. Growth Energy requests that IRS amend this provision to allow for annual reviews of
applicable prevailing wage requirements and payroll compliance to demonstrate that there was
no intentional disregard of the prevailing wage requirements.
Further, if a taxpayer has not intentionally disregarded the prevailing wage requirements
and has made comprehensive and fulsome efforts to obtain the identity of a laborer or mechanic
that may have completed prevailing wage covered work, the taxpayer should be given flexibility
to fully cure the potential violation by remitting funds to state unclaimed property funds, paying
a penalty to the IRS, and/or establishing an escrow account that would be available to individuals
that alert the taxpayer that a corrective payment may be owed to the individual.
Finally, to avoid any confusion and ensure that biofuels producers are claiming the full
credit for which they are eligible, IRS should clarify in guidance or in the final Section 45Z
regulations that, in order to claim the additional prevailing wage credit, taxpayers will only need
to demonstrate compliance with prevailing wage requirements for the taxable year in which they
are claiming the credit. Taxpayers would not need to meet prevailing wages requirements in any
year prior or any year following the taxable year for which the credit is being claimed. This clarification aligns with the statutory language on prevailing wage requirements for Section 45Z
and avoids potential confusion that could lead to unnecessary burdens on taxpayers.
c. IRS should provide a de minimis threshold and/or safe harbor distinguishing
between maintenance work and alteration or repair work.
Prevailing wage requirements are applicable to “construction, alteration, or repair of a
similar character.”51 These terms are defined to exclude maintenance work, described as work
that is “designed to maintain and preserve functionality of a facility after it is placed in service
[including] regular inspections of the facility, regular cleaning and janitorial work, regular
replacement of materials with limited lifespans such as filters and light bulbs, and the regular
calibration of equipment.”52 However, given the broad range of work necessary to support a
biorefinery, it may not always be clear whether a particular activity is best categorized as
maintenance work, on the one hand, or alteration or repair work, on the other. We therefore
encourage the IRS to establish a de minimis cost threshold, below which work can be classified
as routine maintenance rather than alteration or repair. Additionally, or at a minimum
alternatively, we encourage the IRS to establish a safe harbor allowing taxpayers to rely upon a
contractor’s certification of whether the work conducted was maintenance or alteration/repair in
nature.
VII. IRS Should Adjust the SAF Certification Process to Ease Potential Bottlenecks and
Administrative Complications.
As a general matter, Growth Energy supports IRS’ proposal to designate 45ZCF-GREET
as a “similar methodology” to CORSIA for purposes of determining the emissions rate for SAF
transportation fuel,
53 and to utilize individuals accredited under either the American National
Standards Institute National Accreditation Board (“ANAB”) or under the California Low Carbon
Fuel Standard (“LCFS”) program to certify fuels consistent with 26 U.S.C. §
45Z(f)(1)(A)(i)(II)(B).54 In this section, we provide recommendations to further improve and
streamline this certification process.
First, we encourage IRS to expand the pool of eligible certifiers to ensure adequate
capacity exists as the SAF market continues to grow. In addition to verifiers registered under the
California LCFS program, IRS should accept verifiers registered under analogous clean fuels
standards in other states, including the Oregon Clean Fuels Program, Washington Clean Fuels
Standard, and New Mexico Clean Transportation Fuel Program. Moreover, any individuals with
accreditations recognized under proposed § 1.45Z-5(b)(3)(i) to certify taxpayers who use
CORSIA to establish emissions rates should similarly be recognized as capable of certifying
taxpayers who use 45ZCF-GREET to establish rates under § 1.45Z-5(b)(3)(ii).
Additionally, with respect to certification requirements for verifying an emissions rate,
while Growth Energy recognizes the importance of accuracy in measurement and periodic
instrument calibration, annual calibration of metering equipment, as set forth in the Proposed
Rule, is unnecessary and not practical at all production facilities.55 Maintenance and calibrationneeds vary considerably by the specific equipment at issue. For example, steam meters are
certified and calibrated upon installation and then verified through monthly accounting
reconciliation using the monthly energy allocation reporting. The steam meter will not deviate
from its initial calibration unless there is a failure, which will become evident in the monthly
data.
The Proposed Rule’s one-size-fits-all approach is therefore inappropriate, and could be
costly, unnecessary, or simply not applicable to the metering equipment at issue. IRS should
instead tailor the calibration requirements in the 45Z Credit regulations to the particular
maintenance and calibration requirements suggested by the original equipment manufacturer
(“OEM”).
VIII. Anti-Stacking Clarifications
Growth Energy supports IRS’ clarifications to the anti-stacking provisions indicating that
taxpayers may make separate elections for each taxable year regarding which anti-stacking credit
to claim.56 IRS should further clarify that, consistent with the definition in Proposed § 1.45Z1(b)(18)(iv)(A) that carbon capture equipment is included in a “facility” only “if such carbon
capture equipment contributes to the lifecycle GHG emissions rate,” use of carbon capture
equipment that does not contribute to the emissions rate for a transportation fuel for which 45Z
credit is claimed, does not preclude a taxpayers claim for 45Q credit.57 For example, if an
ethanol producer (a) produces low-GHG ethanol as calculated using 45ZCF-GREET without
consideration of carbon intensity emissions reductions associated with sequestration of carbon
dioxide from process emissions and (b) sequesters carbon dioxide from the facility consistent
with 45Q, the producer should be eligible to claim both 45Q and 45Z as it avoids Congress’s
intended prohibition against “double-counting” the same activity. Growth Energy requests that
IRS clarify Example 4 in the final anti-stacking regulations to clarify this circumstance.
* * *
Growth Energy appreciates the IRS’ consideration of this input as it works to finalize the
Section 45Z regulations. We look forward to engaging further on this important work and would
be happy to meet with your staff to present on these issues in more detail and answer any
questions.
Sincerely,
Chris Bliley
Senior Vice President of Regulatory Affairs
Growth Energy

The post Growth Energy Provides Comments for Treasury’s Final 45Z Rule appeared first on Growth Energy.

WASHINGTON, D.C.—Growth Energy welcomed news that a bipartisan group of lawmakers had introduced an amendment to the Farm, Food, and National Security Act of 2026 (also known as the Farm Bill) this week that would finally allow for the year-round sale of E15.

“This landmark, bipartisan solution for year-round E15 would unlock new options at the pump, saving consumers up to 30 cents per gallon and expanding markets for America’s farmers,” said Growth Energy CEO Emily Skor. “With the summer driving season approaching fast, this amendment represents a critical opportunity to unleash investment in rural communities and shield U.S. consumers from volatility with lower-cost, American-made fuel. We urge the House to support this amendment and send it to the President, who has promised to sign year-round E15 into law without delay.”

Now that the deadline for amendments to the Farm Bill has passed, the House Rules Committee is set to consider the legislation next week. Growth Energy will continue to monitor the bill and urged its supporters to contact your legislators and urge them to support the bill.

The post Growth Energy Urges Congress to Support E15 Amendment to Farm Bill appeared first on Growth Energy.

(Pictured above: POET Bioprocessing – Obion, photo courtesy of POET).

WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, welcomed three new producer plant members this week: POET Bioprocessing – Obion, Hereford Ethanol Partners LP, and PureField Ingredients LLC. Growth Energy’s total plant membership now sits at 98, and the organization continues to represent more than half of all U.S. bioethanol production capacity. 

“Growth Energy’s membership is defined by its commitment to innovation, and to our shared belief that American biofuels are a solution to some of our nation’s most-pressing challenges. Our three newest plant producer members—POET – Obion, Hereford Ethanol, and PureField—perfectly embody these values,” said Growth Energy CEO Emily Skor. “Each of them produces millions of gallons of ethanol every year—ethanol that saves consumers money, generates income for American farmers, and delivers more high-value coproducts like animal feed and biogenic CO2. We are thrilled to welcome them to Growth Energy and look forward to connecting them with our unmatched network of biofuel producers, supporters, and solutions providers.”

POET, the world’s largest producer of biofuels, has added its newest facility—POET Bioprocessing – Obion (pictured above)—to the Growth Energy membership roster. The company acquired the Tennessee-based Obion facility in 2025, increasing POET’s total production capacity by 120 million gallons and improving its access to southeastern markets. The plant provides high-performance fuel as well as premium, high-quality livestock feed solutions for regional, national, and international markets.

“POET has been with Growth Energy from the beginning,” said Joshua Shields, POET Senior Vice President of Corporate Affairs. “No other organization can match this team’s political savvy, innovative spirit, and deep commitment to American farmers and biofuel producers. Together, we will continue to usher in a new era of growth for U.S. agriculture and homegrown energy.”

Hereford Ethanol Partners LP is a family-owned facility based in Hereford, Texas. It has a current annual capacity of 100 million gallons—a number that will grow with new improvements underway in 2026. It also supplies wet distillers grain to Friona Industries—Hereford’s sister company and the second-largest cattle feeder in North America.

“We’re excited to work alongside our new partners at Growth Energy to advocate for farmers and producers across the nation,” said Don Gales, Chairman and Chief Executive Officer of Friona Industries. “The team at Growth Energy has a proven track record of unlocking new opportunities for America’s biofuel sector, and Hereford Ethanol Partners is proud to be a part of those conversations.” 

Finally, PureField Ingredients LLC operates a 52 million-gallon integrated food and biofuels facility in Russell, Kansas, converting locally grown wheat into high-value food ingredients while utilizing residual starch to produce ethanol. The company recently began operating its carbon capture and sequestration (CCS) system—one of the first Class VI wells permitted in the United States. The CCS capability makes PureField one of the lowest carbon fuel producers in the world, and reinforces long-term demand for approximately 20 million bushels of Kansas wheat and sorghum. 

“PureField sits at the intersection of food and fuel—maximizing the value of every bushel while strengthening domestic food and energy production,” said Aaron Buettner, CEO of PureField. “The addition of carbon capture provides a foundation for future growth of both food ingredient and biofuel production. We are excited to partner with Growth Energy to ensure policies continue to support U.S. producers and farmers and enable the next phase of growth in advanced biofuels.”

The post Growth Energy Welcomes New Members—POET – Obion, Hereford Ethanol, and PureField appeared first on Growth Energy.

On March 27, 2026, the Environmental Protection Agency (EPA) issued the Renewable Fuel Standard (RFS) “Set 2” Final Rule, establishing Renewable Volume Obligations (RVOs) for 2026 and 2027 at the largest levels in the nation’s history.

The EPA also finalized a 70 percent partial reallocation of the 2023-2025 RVOs waived via the Small Refinery Exemption (SRE) program for 2026 and 2027. The SRE reallocation volume for 2026 has been set at approximately 990 million RINs, and for 2027, the SRE reallocation volume has been finalized at 1.04 billion RINs.

EPA’s June 2025 proposal included provisions aimed at boosting domestic biofuel production by limiting the ability of imported fuels and feedstocks to participate in the RFS. Under the proposal, foreign biofuels and feedstocks would only generate 50 percent of the RIN value relative to domestic biofuels and feedstocks. EPA did not finalize this provision and cited that it needs more time to establish this piece of the rulemaking. EPA intends to establish these provisions beginning in the 2028 compliance period.

RVO Numbers

Thank you!

We extend gratitude to the Trump administration and Congress for supporting the delivery of the strongest RVOs in the history of the RFS program.

The post RFS Set 2: A Key Component of American Energy Dominance appeared first on Growth Energy.

Reduce Fuel Prices with E15

• Enact legislation to permanently allow year-round sales of E15 (S.593/H.R.1346: Nationwide Consumer and Fuel Retailer Choice Act).
• Encourage the Environmental Protection Agency (EPA) to finish regulatory action from the first Trump Administration that would revise burdensome E15 labeling requirements and allow current refueling infrastructure that is compatible with E10 to be compatible with E15.

Drive American Innovation Through Federal Tax Incentives

• Treasury should keep the current proposed 45Z rulemaking intact, with the following modest changes:
• Allow the use of U.S. Department of Agriculture’s (USDA) proposed farm practices in conjunction with the GREET model’s feedstock carbon intensity calculator to calculate credit value.
• Finish Provisional Emissions Rate (PER) regulation.
• Fix “qualifying sale” regulation to clarify documentation sufficient to establish a “qualified sale” in a manner consistent with the practicalities of the existing fuel distribution market.
• Finalize the addition of ASTM D8651 for undenatured ethanol within the definition of “low-GHG ethanol.”
• Provide additional prevailing wage flexibility.
  • Geographic flexibility for job classifications.
  • Allow yearly (instead of quarterly) compliance.
• Adjust SAF certification process to ease potential administrative bottlenecks and complications.
• Further clarify anti-stacking provision.
• Change 45ZCF-GREET User Manual to allow carbon utilization to count as a CI reducing practice.

Rebuild the Farm Economy with a Robust Renewable Fuel Standard (RFS)

• Extend gratitude to the Trump administration and Congress for the strongest Renewable Volume Obligation (RVO) in the history of the RFS program.
• Prohibit unwarranted or illegal small refinery exemptions (SREs).
• Maintain EPA’s policy that any SREs granted do not come at the expense of overall RVO requirements.
• Approve and complete RFS pathways including for corn oil from ethanol wet mills, ethanol produced with carbon capture, kernel fiber from grain sorghum, and corn starch alcohol-to-jet fuel.

Win Global Markets with American Ethanol

• Encourage U.S. trade diplomats to combat unfair trade barriers and tariffs imposed on American ethanol by competitors in Brazil, China, India, Europe, and Southeast Asia.
• Open new export opportunities for American ethanol by supporting higher blends in Canada, Japan, India, Mexico, and across the globe.

Unleash American Energy Dominance by Reducing Barriers to Private Investment

• Ask EPA to process Class VI underground injection control well permits within two years of receiving an application.

The post Ethanol Policy Roadmap appeared first on Growth Energy.

Fair trade policies and increased incorporation in U.S. international energy engagements will grow American agriculture and give American ethanol producers greater access to global markets. Current trade negotiations could eliminate unfair trade practices and build upon U.S. ethanol’s robust trade surplus.

Resolving tariff and non-tariff trade barriers, including inaccurate carbon intensity scores, will help U.S. exporters satisfy growing ethanol demand across the globe.

Overview

The U.S. ethanol industry exported a record 2.18 billion gallons of ethanol in 2025 — valued at $4.8 billion. Those exported gallons were made with more than 754 million bushels of U.S. corn — valued at more than $3 billion. U.S. ethanol also produces valuable co-products, including nutrient-rich animal feed known as dried distillers’ grains (DDGs). In 2025, the U.S. ethanol industry exported 11.6 million metric tons of DDGs, valued at $2.8 billion.

Our policy asks

• Support and encourage U.S. trade diplomats to continue to implement newly formed trade agreements, frameworks, purchase agreements, including in the United Kingdom, Japan, Indonesia, and Guatemala.
• Encourage U.S. trade diplomats to combat unfair trade barriers and tariffs imposed on American ethanol — including by countries that restrict imported fuel ethanol (India), have prohibitive tariffs (Brazil, China), or inaccurately restrict corn feedstocks (EU, U.K.).
• Expand current ethanol blending opportunities (Canada, Vietnam, Philippines, Japan) and open new export opportunities for biofuels across the globe (Mexico).
• Ensure strong U.S. government engagement in international organizations to ensure international lifecycle emissions models accurately, scientifically, and fairly reflect U.S. ethanol’s improved efficiencies and circumstances.  This will ensure export market potential for U.S. ethanol as countries develop aviation and maritime emission reduction programs.

Focus on Brazil and Mexico

In July, the Office of the U.S. Trade Representative (USTR) launched a Section 301 investigation into Brazil’s unfair trade practices, including its market access restrictions on U.S. ethanol. Brazil has enjoyed duty-free access to the U.S. market and can participate in the U.S. Renewable Fuel Standard and state-based low carbon fuel programs. Conversely, U.S. ethanol faces an 18 percent tariff in Brazil and no U.S. ethanol producer has been qualified under Brazil’s low carbon fuel program, RenovaBio. Brazil also seeks preferential treatment for their second-crop corn within international organizations while misleading global policymakers about U.S. ethanol.

New leadership in Mexico is reversing earlier disinterest in ethanol blending, which could result in a nearly one-billion-gallon market and make a dent in the U.S. agricultural trade deficit. Shifting Mexico’s fuel policy to support American agriculture will require all-in U.S. government support.

The post Win Global Markets with American Ethanol appeared first on Growth Energy.

The 45Z Clean Fuel Production Tax Credit provides a tax credit for low emissions fuels that have a carbon intensity (CI) score below a baseline level (50 kgCO2e/MMBTU). This incentive is critical to ensure we maintain our dominant position as the world’s top biofuel producer, provide new income opportunities for growers in an ailing farm economy, and ensure U.S. leadership in liquid fuels for light-duty vehicles, heavy-duty trucks, sustainable aviation fuel (SAF), and marine vessels.

This pro-growth tax policy will unlock billions of dollars in new investments in U.S. clean energy innovation.

Our Regulatory Asks

Treasury should keep the current proposed 45Z rulemaking intact, with the following modest changes:

• Allow the use of U.S. Department of Agriculture’s (USDA) proposed farm practices in conjunction with the GREET model’s feedstock carbon intensity calculator to calculate credit value.
• Finish Provisional Emissions Rate (PER) regulation.
• Fix “qualifying sale” regulation to clarify documentation sufficient to establish a “qualified sale” in a manner consistent with the practicalities of the existing fuel distribution market.
• Finalize the addition of ASTM D8651 for undenatured ethanol within the definition of “low-GHG ethanol.”
• Provide additional prevailing wage flexibility.
  • Geographic flexibility for job classifications.
  • Allow yearly (instead of quarterly) compliance.
• Adjust SAF certification process to ease potential administrative bottlenecks and complications.
• Further clarify anti-stacking provision.
• Change 45ZCF-GREET User Manual to allow carbon utilization to count as a CI reducing practice.

Soaring Potential

• With the right policy certainty, the 45Z credit could:
• Add $21 billion to the U.S. economy.
• Support 192,000 new jobs.
• Generate $13.4 billion in household income.
• Provide farmers with a 10% premium price on low-carbon corn used at an ethanol plant.

The post Drive American Innovation Through Federal Tax Incentives appeared first on Growth Energy.

We write today to provide comments regarding the prevailing wage and apprenticeship (PWA)
requirements set forth in T.D. 9998,1 as applied to the Section 45Z Clean Fuel Production Credit, and the
Treas. Reg. §1.45Z-3 regulation that further define the PWA requirements under section 45Z. Since the
publication of these final rules on June 25, 2024, the companies we represent have been diligently
attempting to comply with their provisions. We strongly support the objectives of Treas. Reg. §1.45Z;
however, our members’ efforts to apply this regulation to our businesses to claim the enhanced section
45Z credit have raised a number of issues. We have the following concerns regarding application of the
PWA rules in the 45Z context, and we are hopeful you will consider addressing them.
I. PWA Rules for Facilities in Construction Prior to the Inflation Reduction Act (IRA)
Taxpayers have faced substantial uncertainty regarding how to manage the PWA rules for section 45Z
purposessince their original enactment in the Inflation Reduction Act of 2022 (IRA). The original transition
rules set forth in subsections 45Z(f)(6) and (f)(7) were wholly prospective in nature and addressed only
the application of the PWA rules for projects placed in service after the January 1, 2025,2 effective date
for section 45Z. This created significant problems and inequity for projects that started construction
before the enactment of the PWA rules under the IRA and placed in service after December 31, 2024.
After the enactment of the IRA and the PWA rules, the only guidance taxpayers had to rely on in managing
PWA was set forth in Notice 2022-61. Taxpayers logically assumed this guidance would ultimately be
extended for section 45Z purposes. In particular, taxpayers assumed that a single unified approach to
grandfathering projects from the scope of PWA would ultimately apply for all IRA credits.3
Due to the
absence of meaningful and actionable PWA guidance for section 45Z, taxpayers were unable to develop practical approaches to addressing PWA for facilities already well into construction before these rules
were enacted.
The promulgation of the final PWA regulationsin June 2024 wasthe first time taxpayers were made aware
that construction delays could cause a facility to become subject to PWA requirements. The following
example illustrates this outcome:
Taxpayer X commenced development of a biofuels production facility prior to the
enactment of the IRA. Due to natural disasters, fires or other unavoidable construction
delays, the facility was placed in service on August 1, 2025. Based on the plain language
of section 45Z(f)(6) and (f)(7) and Treas. Reg. § 1.45Z-3, the facility would be required to
obtain PWA information for the construction period between 2023 and August 1, 2025,
in addition to being subject to penalties and interest for lack thereof.
This example highlights the unduly burdensome application of the PWA rules under section 45Z(f)(6) and
(f)(7) and Treas. Reg. § 1.45Z-3. Although Treas. Reg. § 1.45Z-3 attempts to provide a limited transition
period for PWA during the construction period,4 it failed to address the common instance of facilities for
which construction began prior to the existence of the PWA rules and to the PWA grandfathering date set
forth in Notice 2022-61. As a result, taxpayers would be unfairly subject to penalties and interest for
noncompliance with a law that was not, under the IRS’s own guidance, applicable to pre-IRA construction
periods with respect to all other tax credits.
There is no indication that Congress anticipated, or intended, such an outcome. Notice 2022-61 was
consistent with congressional intent and established a clear, workable, and administrable bright-line rule
for determining the application of PWA requirements for other IRA credits. By contrast, the retroactive
and inflexible application of the PWA rules in the section 45Z context does not further that intent.
We acknowledge that the statutory transitional rules in sections 45Z(f)(6) and (f)(7) expressly reference
the placed-in-service date as determinative of PWA applicability for section 45Z purposes. Nevertheless,
equitable relief is warranted for taxpayers that have taken timely and affirmative steps to address
technical PWA noncompliance for projects such as the one described above.
Requested Solution: We are seeking equitable relief for projects that began construction prior to January
29, 2023, but were not placed-in-service until after December 31, 2024. This equitable relief could take
several forms, including but not limited to: (i) sub-regulatory guidance such as an IRS Notice5 offering
targeted relief to taxpayers seeking to bring these projects into a PWA compliant status to claim the
maximum allowable 45Z PTC; (ii) an industry directive; or (iii) a voluntary amnesty program with predefined rules of the road for taxpayers willing to take the appropriate steps to bring these projects into
PWA compliant status.
This request should take into account the following factors:(1) Retroactive remediation of PWA compliance across multiple, unrelated construction service
providers over a multi-year period is impracticable, and in most cases, unworkable. If Treasury
determines that some degree of retroactive remediation is necessary, such remediation should
be narrowly scoped, timelimited, and subject to a reasonable, goodfaith compliance standard.
At a minimum, remediation should not be required for work subject to PWA that occurred
prior to January 1, 2025.
(2) Retroactive application of the apprenticeship requirements under section 45(b)(8) would only
require taxpayers to pay significant penalty payments without any real enhancements to
apprenticeship programs across the energy industry. This is not the intent of the law nor the
intent of Congress. Taxpayers should not be subject to these penalties when they did not have
the opportunity to adhere to these rules in a timely manner; and
(3) Taxpayers that have shown a good faith effort to comply with PWA for projects that were not
placed in service by January 1, 2025, should not be subject to penalties and interest. The IRS
should issue guidance to support a mechanism that helps taxpayers who have been clearly
disadvantaged by these rules. Taxpayersshould not be subject to penalties and interest for failing
to follow rules that did not exist when they began their construction activities.
We respectfully urge Treasury and the IRS to develop equitable relief in whatever form deemed most
appropriate so taxpayers may meet the 2025 tax return filing requirements.
II. Other Dates of Applicability Issues
A. Although subsections 45Z(f)(6)(B)(i) and (ii) excuse facilities placed in service prior to 2025 from
compliance with PWA requirements with respect to construction, such facilities are not excused from
ongoing compliance with respect to alterations or repairs performed after 2024. In Treas. Reg. §
1.45Z-3(b)(2), Treasury has followed the statute by requiring continued compliance with PW
requirements for alterations and repairs even for facilities placed in service prior to 2025. The
regulation does not reflect, however, the statement made in the Preamble of T.D. 9998, that Treasury
interprets the PWA requirements as applying only to facilities placed in service after 2021:
Undersection 13010(k) of the IRA, the rules ofsection 45(b)(7) and 45(b)(8) apply with
respect to facilities that are placed in service after December 31, 2021. Thus, the
Treasury Department and the IRS interpret the PWA requirements of sections
45Z(f)(6) and 45Z(f)(7) generally as applying to any qualified facility that is placed in
service after December 31, 2021, subject to the transition rule described in Section II.
of this Summary of Comments and Explanation of Revisions. (Summary of Comments
and Explanation of Revisions, Section IX.G.) (Emphasis added.)
The implication of thisstatement isthat the PWA requirements do not apply at all to any clean fuel facility
placed in service before 2022. On its face, however, Treas. Reg. § 1.45Z-3(b)(2) simply provides that any
facility placed in service before 2025 must comply with the requirements for alterations and repairs,
thereby including even facilities placed in service before 2022.
Understandably, without confirmation that the preamble statement may be relied upon to relieve
taxpayers of PW compliance as to alterations and repairs of facilities placed in service before 2022,
taxpayers that are using older facilities to produce clean fuel are confronted with an ambiguity as towhether they are obligated to comply with PW with regard to alterations and repairs since the regulation
is inconsistent with the Preamble statement.
Requested Solution: We request guidance clarifying that facilities placed in service prior to 2022 are not
subject to PW compliance with respect to alterations and repairs.
B. Additionally, the statutory language of the IRA and the final PWA rules raise an ambiguity
regarding the applicability of PWA compliance for section 45Z. The IRA provides that the PWA
requirements apply to section 45Z “with respect to any taxable year beginning after December 31,
2024, for which the credit is allowed under this section.” (Emphasis added.) (P.L. 117-169, Aug. 16,
2022, Section 13704(a)). This bolded language could be taken to mean that PWA compliance as to
alterations and repairs is required only in years for which the 45Z enhanced credit is claimed.6
However, in the final PWA guidance applicable to 45Z, Section 1.45Z-3(b)(2) simply states that a qualified
facility placed in service prior to January 1, 2025, is one “that meets the prevailing wage requirements of
section 45(b)(7) and § 1.45-7 with respect to any alteration or repair of such qualified facility that is
performed in taxable years beginning after December 31, 2024,” implying that PWA compliance is
required for all years beginning with 2025, regardless of whether the enhanced credit is claimed.
Requested Solution: We request that the Treasury Department provide additional guidance with respect
to the PWA rules to clarify that PW compliance for alterations and repairs is required only for those years
for which the enhanced 45Z credit is claimed.
III. Definition of Alteration or Repair
Since the release of the final PWA regulations, taxpayers continue to experience frustration with the
definitions of “alteration or repair” included in the final PWA rules. For instance, many taxpayers believe
that the current definition of maintenance isso narrow that almost every activity is classified as a “repair.”
For taxpayers in the clean fuel industry, certainty as to whether an activity is a repair or maintenance is
crucial as failure to comply with the applicable requirements for repairs will prevent taxpayers from
accessing the full credit amount.
For example, clean fuel production plants are extremely complicated and involve a number of parts
subject to routine wear. A production plant must be actively maintained on both a daily and routine basis
and many parts are subject to periodic replacement protocols. For example, many parts have a commonly
accepted useful life but are generally only replaced when they fail to avoid incurring the significant waste
and capital cost of procuring replacement parts before they are necessary.
Requested Solution: We request that the Treasury Department continue to work with taxpayersto further
refine the definition of “alteration or repair,” particularly as distinguished from “maintenance.” There are
several ways to do this, all of which could be handled in a Revenue Procedure:
(1) Provide additional examples of maintenance and “alteration or repair.”
(2) Clarify that taxpayers may demonstrate that tasks are properly treated as “maintenance” by
reference to written materials provided by an equipment manufacturer.(3) Clarify that “maintenance” istreated as amountsthat would not be capitalized to the qualified
facility and “repair or alteration” includes only costs that may be capitalized to the qualified
facility, in each case, under existing U.S. federal income tax capitalization requirements.
(4) Provide a de minimis threshold for the cost of labor or number of hours of labor required per
task. This could correlate with the $2,000 contract applicability threshold from Davis-Bacon that
is intended to apply in the context of 45Z PWA requirements. In other words, if the labor
associated with a task would cost lessthan $2,000 at a service provider’stypical rate (or the wages
typically paid by the taxpayer to its employees for similar work), then the task is not treated as
“repair or alteration.”
IV. Prevailing Wage
“Prevailing Wage” in 45Z relies on Davis-Bacon Act wage determinations issued by the Department of
Labor for the “locality” in which the facility is located, which means that a taxpayer must pay the wages
set by DOL under general wage determinations for a geographic area. However, the unique geography of
biofuels production and the relative novelty of the technology create situations where the DOL has
insufficient data to issue a prevailing wage determination in some counties where these facilities are
located.
While current IRS regulations provide a mechanism to request “supplemental wage determinations” or
“additional classifications and rates for those localities or specific types of labor,” that process creates
additional burdens and delays for the taxpayer.
Requested Solution: We request that taxpayers claiming the 45Z credit be permitted to use the relevant
prevailing wage determination or labor classification from the nearest locality (defined as any locality
adjacent to or sharing a border with the subject locality) if that information is not available for the locality
where the facility is located.
V. Compliance Testing
A. While periodic reviews are important and necessary to ensure and demonstrate compliance with
the PWA requirements, pursuant to regulation 1.45-7(c)(3)(iii)(B), taxpayers find themselves
compelled to perform burdensome current quarterly reviews.
Requested Solution: We request that additional guidance for the PWA rules instead allow for annual
reviews for compliance.
B. Frequently, work undertaken to effect an “alteration or repair” is performed by a contractor
rather than directly by the taxpayer. Notwithstanding any contractual agreement requiring the
contractor to provide the necessary payroll data to allow the taxpayer to meet PWA compliance
record-keeping requirements, many of these actors are small companiesthat may go into bankruptcy,
refuse to provide information for various reasons (including concerns about personally identifiable
information (PII)), or simply disappear.
Requested Solution: We request that the additional guidance for the PWA rules allow the taxpayer to rely
on an affidavit provided by the contractor affirming its compliance and permit such affidavit to satisfy the
taxpayer’s compliance obligation. We also request that a good faith exception apply in cases where the
taxpayer has attempted multiple times without success to reach an unresponsive or uncooperative
contractor and has been unable to procure the data required or an affidavit of compliance.VI. Penalty Abatement
Taxpayers often find themselves in the position of having underpaid by extremely small amounts.
However, in addition to being required to cure the underpayment, they are also potentially subject to a
$5,000 penalty multiplied by the total number of workers who were paid wages below the prevailing rate
(section 45(b)(7)(B)(i)(II)), regardless of how small the required corrective payment might be. While
regulation 1.45-7(c)(6)(i) provides a penalty waiver under certain circumstances, the amount of time
provided to the facility owner to correct the underpayment (1 month) is very restrictive, particularly if the
quarter in question happens to be the final quarter of the year.
Requested Solution: We request that any additional guidance for the PWA rules create a safe harbor de
minimis dollar amount beneath which no penalty isincurred for underpayment. In addition, development
of a de minimis amount of failure to comply, under which no cure payment is required, would be helpful
in cases for which information is not available to allow for the corrective payment to the affected worker.
Finally, we ask that taxpayers be provided 90 days beyond the end of the quarter in question to make
corrective payments.
Conclusion
Thank you for all the hard work you have put into the further implementation of the IRA and OBBBA and
for your commitment to ensuring the clean energy provisions work as intended. We hope that you will
consider the above requests for guidance in the spirit in which they are offered, and that is to make these
rules more administrable and workable for both industry and government. We encourage you to reach
out to any of the undersigned as a resource on these issues.
Sincerely,
Advanced Biofuels Association
Alternative Fuels & Chemicals Coalition
American Biogas Council
American Petroleum Institute
Clean Fuels Alliance America
Fuel Cell and Hydrogen Energy Association
Growth Energy
Methanol Institute
Renewable Fuels Association
RNG Coalition
SAF Coalition

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