(NAFB.com) – The Renewable Fuels Association welcomed a proposed rule implementing the 45Z Clean Fuel Production Tax Credit, calling it a key step toward providing long-awaited clarity for ethanol and other biofuel producers. In a statement, RFA President and CEO Geoff Cooper said the proposal from the U.S. Treasury Department reflects progress in aligning the credit with congressional intent by rewarding low-carbon fuel production based on lifecycle greenhouse gas emissions. He said regulatory certainty is critical for producers making long-term investment decisions. The 45Z credit, created under the Inflation Reduction Act, replaces earlier biofuel tax incentives and is designed to encourage domestic production of cleaner transportation fuels beginning in 2025. Industry groups have urged Treasury to clearly define eligibility, emissions modeling and reporting requirements. RFA said the proposed regulation would help strengthen rural economies, support U.S. energy security and accelerate innovation across the renewable fuels sector as producers work to lower carbon intensity and expand clean fuel markets.