WASHINGTON-The U.S. Department of Energy (DOE) Alternative Fuels and Feedstocks Office (AFFO) released a pre-publication draft of a federal register notice announcing the Emissions Value Request (EVR) process for the 45Z fuel production tax credit. Modified and extended under the Working Families Tax Cut, the Clean Fuel Production Tax Credit (Internal Revenue Code Section 45Z) provides a production incentive for certain feedstocks produced in the United States, Mexico, or Canada.
“Thanks to President Trump’s Working Families Tax Cut, we are creating new opportunities for American farmers and fuel producers to strengthen domestic energy production, reduce costs, and unleash American energy dominance,” said Assistant Secretary of Energy Audrey Robertson. “Through the Department of Energy’s new 45Z Emissions Value Request process, we are expanding opportunities for American fuel producers to access critical tax incentives, supporting rural economies, and bringing more American-made fuels to market. In short: putting American energy first.”
Transportation fuel producers seeking to claim the tax credit must obtain the life cycle greenhouse gas emissions rate of their transportation fuel using the applicable rate table for Section 45Z. If the fuel’s type, primary feedstock, or pathway is not included in the rate table, fuel producers must petition the Secretary of Treasury for a provisional emission rate (PER). The 45Z EVR process is the route through which fuel producers can obtain a rate value from DOE and petition U.S. Treasury for a PER.
To request an emissions value from DOE, stakeholders must follow the EVR Application Instructions to submit the following requested materials:
- Engineering information/analyses consistent with the specified section of the front-end engineering and design (FEED) study or similar indication of project maturity, as determined by DOE.
- A completed EVR form.
In addition to the required documents, an applicant also has the option to include additional information that may be beneficial in completing lifecycle analysis of the transportation fuel production pathway described in the EVR form and FEED study.