ENERGY EVOLUTION: 45Z CLEAN FUEL PRODUCTION CREDIT
Optimizing federal incentives for clean fuel production can be complex, with evolving rules and technical requirements that affect project returns. The 45Z Clean Fuel Production Credit offers significant opportunity, but capturing its full value requires careful planning and accurate modeling. Whether you’re seeking energy tax credits and incentives, energy consulting or transaction structuring, Weaver helps identify opportunities that maximize the benefits for your project.
UNDERSTANDING THE 45Z CLEAN FUEL PRODUCTION CREDIT
The federal government’s 45Z Clean Fuel Production Credit is a game changer. 45Z Clean Fuel Production Tax Credits (PTCs) are commonly available for existing renewable fuel facilities, including renewable natural gas, ethanol, Sustainable Aviation Fuel (SAF) biodiesel and renewable diesel.
Determining carbon intensity for certain production credits is based on the various Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) models published by the Department of Energy (DOE). Facilities seeking to obtain 45Z PTCs are required to use the 45ZCF-GREET model or submit a Provisional Emission Rate for novel feedstock or processes.
LIFE CYCLE ANALYSIS DEVELOPMENT: 45Z PRODUCTION CREDIT
Weaver’s team is skilled and experienced in assisting clients with carbon intensity modeling and can provide the following consulting services:
⊲ Collect data, documentation and other information necessary for pathway modeling
⊲ Conduct life cycle modeling and analyses under 45ZCF-GREET model
⊲ Create a Provisional Emission Rate for your facility, if needed
KEY CONTACTS:
TONY MILLER, PE
PRINCIPAL, ENERGY COMPLIANCE SERVICES
O: 303-970-1671
TONY.MILLER@WEAVER.COM
JILLIAN BLANCHARD
MANAGING DIRECTOR, ENERGY COMPLIANCE SERVICES
O: 212-405-2459
JILLIAN.BLANCHARD@WEAVER.COM
For companies engaged in innovative production processes currently not included in GREET, upon published guidance from IRS, our team will collaborate with you to develop customized modeling solutions. This will involve creating energy and emissions factor inputs that may not be adequately addressed by the existing GREET model. We will also review your modeling and other pathway application materials and coordinate your submission to the relevant regulatory bodies, including but not limited to the Internal Revenue Service (IRS), Department of Energy (DOE), and other relevant agencies.
CARBON INTENSITY DUE DILIGENCE: CLEAN FUEL PRODUCTION CREDIT (45Z)
Weaver can conduct due diligence of your specific facility’s or facilities’ emission rate as calculated under 45ZCF-GREET and corresponding emission factor for the 45Z Clean Fuel Production Credit for use by your PTC broker and buyer. This is necessary for all transactions where a buyer is requiring an independent check by reputable organizations.
WHY WEAVER?
Claiming 45Z Clean Fuel Production Credits requires deep knowledge of regulatory requirements, carbon intensity calculations and transactional considerations. Weaver’s team guides companies through these complexities with actionable solutions, providing a strategic edge in maximizing the value of clean fuel projects.
