US Treasury Targets November Release for Final 45Z Clean Fuel Tax Credit Rules

The White House Office of Management and Budget (OMB) has indicated that the U.S. Treasury Department plans to issue the final regulations for the Section 45Z Clean Fuel Production Tax Credit in November 2026. The long-awaited rules are expected to provide greater certainty for producers of renewable diesel, biodiesel, and sustainable aviation fuel (SAF), particularly regarding lifecycle greenhouse gas emissions calculations and eligibility requirements.

The regulatory agenda also shows that the U.S. Department of Agriculture (USDA) intends to finalize updates to its Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program in July. The program offers loan guarantees of up to $250 million to support the development, construction, and expansion of advanced biofuel and biobased manufacturing facilities.

Meanwhile, the U.S. Environmental Protection Agency is expected to finalize its reconsideration of the Greenhouse Gas Reporting Program in July, a decision that could affect claims for the Section 45Q carbon capture tax credit. Notably, the agenda does not include an update on the agency’s rulemaking for the 2028 Renewable Fuel Standard (RFS) volume requirements, which are legally required to be finalized before the end of 2026.