In Washington, the Renewable Fuels Association last week submitted comments urging the U.S. Department of Agriculture to implement the use of a “book-and-claim” accounting framework for tracking and transferring the greenhouse gas benefits of climate-smart agriculture (CSA) practices through the biofuels supply chain.
The comments were filed in response to USDA’s request for information (RFI) on procedures for quantifying, reporting, and verifying the GHG benefits of CSA practices. The RFI is expected to inform the U.S. Treasury’s upcoming proposed rule for implementation of the Inflation Reduction Act’s clean fuel production credit, otherwise known as the “45Z credit.”
The benefits of adopting a book-and-claim system for CSA are many, according to RFA. Such an approach:
- Allows farmers who are not in close physical proximity to ethanol, SAF, or other biofuel facilities to be rewarded for adopting CSA practices;
- Allows the grain market to continue operating rationally and efficiently by facilitating the flow of grain to natural buyers based on location, logistics and other market factors; and
- Allows farmers and producers of ethanol, SAF, and other biofuels to better manage market and weather risk.
RFA also encouraged USDA to analyze and quantify a much broader range of “unbundled” CSA practices, rather than relying on the one-size-fits-all approach taken to CSA under the 40B sustainable aviation fuel tax credit.
Tags: RFA, USDA, Washington
Category: Policy
