In his final days as Ag Secretary, Tom Vilsack has released an interim rule for biofuel feedstocks. The industry has been waiting for the move, and Vilsack says it will put farmers back in the driver’s seat.
One of the most notable changes surrounds the 40-B credit for sustainable jet fuel. USDA has lifted the bundling requirement, something the industry has been asking for. In previous versions, only corn ethanol qualified for the tax credit if multiple scenarios were met. The new rule would also allow sorghum as a feedstock option. Vilsack says these changes should set the industry up on a proper path.
“Agriculture now is in a position to say that if we use corn in this county and we use it in a no-till circumstance, we use the properly timed fertilizer. This is the benefit to the ethanol production facility that we’ll be producing. They, in turn, can document to whoever’s purchasing saf that, in fact, it results in a CI score that is more than 50% efficient relative to current jet fuel.”
This interim rule is open for discussion, and USDA will take public comment for the next 60 days.
Biofuel policy decisions may influence planting economics. Today, March 18, is also National Biodiesel Day.
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