The Economics of 45Z Under the One Big Beautiful Bill

Matthew Gammans and Ming Wang

No 401337, ARPC Brief from North Dakota State University

Abstract: This blog examines how proposed changes to the 45Z Clean Fuel Production Credit under the One Big Beautiful Bill may reshape incentives in U.S. biofuel markets. Comparing House and Senate proposals, we focus on three key changes: extending the credit’s duration, restricting eligible feedstocks to North America, and removing indirect land-use change (ILUC) emissions from carbon intensity calculations. While these revisions strengthen the competitiveness of domestic ethanol and soy-based renewable diesel, they also raise concerns about investment certainty, exclusion of foreign suppliers, and weakened environmental accounting.

Keywords: Agricultural and Food Policy; International Relations/Trade; Risk and Uncertainty; Supply Chain (search for similar items in EconPapers)
Date: 2025-07-03
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Persistent link: https://EconPapers.repec.org/RePEc:ags:arpcbr:401337

DOI: 10.22004/ag.econ.401337

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