ARLINGTON, Va., Feb. 3, 2026 — The National Grain and Feed Association (NGFA) today applauded the U.S. Department of the Treasury for releasing its notice of proposed rulemaking to implement the Section 45Z Clean Fuel Production Credit, which provides greater clarity on feedstock sourcing and the role of on-farm agricultural practices in clean fuel production.

The proposed rule, scheduled for publication in the Federal Register on Feb. 4, builds on earlier guidance and reaffirms that agricultural practices remain a viable pathway for biofuel producers seeking to lower their carbon intensity under the Section 45Z framework. Treasury’s proposal anticipates incorporating the not-yet-final USDA Feedstock Carbon Intensity Calculator (FD-CIC) as an input to the Department of Energy’s (DOE) 45Z Clean Fuel GREET model (45Z CF FD-CIC), which will be used for calculating carbon intensity adjustments for feedstocks produced using certain agricultural practices. This includes crediting practices such as reduced tillage, cover crops, and nutrient management, with additional guidance on implementation and verification expected.

The proposal also clarifies feedstock sourcing requirements for fuel produced after Dec. 31, 2025, specifying that eligible feedstocks must be grown or produced in the United States, Mexico, or Canada, along with associated recordkeeping expectations.

“NGFA applauds Treasury for taking an important step to provide greater certainty around how agricultural supply chains can participate in the Section 45Z credit,” said NGFA President and CEO Mike Seyfert. “This proposal reinforces that on-farm practices remain part of the program and outlines a practical path for integrating those practices into carbon intensity calculations.”

NGFA appreciates Treasury’s engagement with stakeholders throughout the development of the proposed rule, including outreach related to the role of agriculture in clean fuel markets. NGFA has worked closely with Treasury, the Department of Agriculture, and other federal partners throughout the development of the proposed rule to help ensure the agricultural supply chain can fully and effectively participate.

NGFA will continue to work with its members and federal agencies as Treasury finalizes the rule and develops additional guidance related to recordkeeping, verification, and compliance. The association expects to provide further information to its members regarding the public comment process in the coming days. Given the significant work required to expand and maintain global market opportunities, it remains essential to establish clarity and expand domestic demand as well. That includes the timely release of the USDA FD‑CIC, the adoption of E15 year‑round, and the finalization of the RFS.

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