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DOE releases revised 45ZCF-GREET model used in computing clean fuel production credit under section 45Z

Updated model for calculating lifecycle greenhouse gas emissions rates under the section 45Z clean fuel production credit.

june 12, 2026

The U.S. Department of Energy (DOE) today released a revised 45ZCF-GREET model [ZIP file] to be used in computing emissions rates for purposes of the clean fuel production credit under section 45Z, along with a manual for the revised model.

Several policy changes from the "One Big Beautiful Bill Act" (OBBBA) are reflected in the 2026 model outputs and clarified in the manual for fuels produced after December 31, 2025, including:

  • Removal of Indirect Land Use Change (ILUC) contributions
  • Ineligibility of feedstocks sourced from outside of the United States, Mexico, and Canada
  • Inability to claim negative values for some fuels
  • Inability to use negative carbon intensity (CI) for process fuels produced from non-manure sources that are consumed in the production of transportation fuels
  • Inability to use the pathway for renewable natural gas (RNG) from [Generic] Animal Manures via Anaerobic Digestion because pathways for specific species must be established

Background

Section 45Z was enacted by the Inflation Reduction Act of 2022 (IRA) and was designed to consolidate and replace certain pre-IRA credits for biodiesel, renewable diesel, and alternative fuels, and incentivize domestic production of both sustainable aviation fuel (SAF) and non-SAF fuels. The amount of the credit is based on the lifecycle greenhouse gas emissions rate of the fuel. Under prior guidance, the Treasury Department determined that the 45ZCF-GREET model issued by the DOE is the proper model for determining emissions rates.

The section 45Z credit was amended and extended by two years under the OBBBA. As a result, the 45Z credit is available for fuels produced after December 31, 2024, and sold before December 31, 2029.
 

For more information, contact a KPMG professional in Washington National Tax:

Taylor Cortright | tcortright@kpmg.com

Praveen Ayyagari | payyagari@kpmg.com

Julie Chapel | jchapel@kpmg.com

Rachel Smith | rachelsmith1@kpmg.com

Kelsey Latham | kcurcio@kpmg.com

 

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