2026: Consider ethanol, biofuel, carbon intensity

Jacqui Fatka CoBank
Jan 9, 2026
Jan 9, 2026

Airplane — One of the most significant changes to 45Z is a provision excluding emissions associated with indirect land-use change from a fuel’s carbon-intensity score.
CoBank

Facebook
Twitter
Bluesky
WhatsApp
SMS
Email
Print
Save

Jacqui Fatka CoBank

Key Points

kAm• tE92?@= AC@5F46CD 42? 42AEFC6 D:8?:7:42?E cd+ A2J>6?ED H:E9 >:?:>2= A=2?E 492?86D]k^Am

kAm• u@C 4@??64E65 724:=:E:6D[ E96 =2F?49 @7 %2==8C2DD %C2:=3=2K6C 42C3@? A:A6=:?6 4C62E6D 2? 6IEC2 42C3@?\:?E6?D:EJ\C65F4E:@? 3@@DE]k^Am

kAm• %96 6=:>:?2E:@? @7 E96 DFDE2:?23=6\2G:2E:@?\7F6= :?46?E:G6 H:== 7FCE96C 4@?DEC2:? =:7E@77 7@C E92E :?72?E :?5FDECJ]k^Am

kAmkDEC@?8m%96 52H? @7 cd+ :D 96C6[k^DEC@?8m H:E9 4@?G6?E:@?2= 3:@7F6= AC@5F46CD 6?E6C:?8 a_ae A@:D65 E@ 42A:E2=:K6 @? D:8?:7:42?E 492?86D :? E96 r=62? uF6= !C@5F4E:@? rC65:E E92E 2==@H AC@5F46CD E@ >@?6E:K6 E96 E2I 4C65:E] r92?86D >256 :? E96 “~?6 q:8 q62FE:7F= q:== p4E” AC6D6CG65 E96 7656C2= E2I\4C65:E AC@8C2> <?@H? 2D cd+ 3FE 6BF2=:K65 E96 36?67:E @7 @?\C@25 7F6=D H:E9 DFDE2:?23=6 2G:2E:@? 7F6=] pD 2 C6DF=E[ 6E92?@= C67:?6C:6D H:== 36?67:E >@DE 7C@> E96 6IE6?D:@? @7 E96 E2I 4C65:E[ 2?5 DFDE2:?23=6\2G:2E:@?\7F6= H:== 4@?E:?F6 E@ DECF88=6 E@ DE2CE E2<6@77] %96 cd+ E2I 4C65:E 42? 36 EC2?D76CC65 E@ @E96C @3=:82E65 A2CE:6D[ 2==@H:?8 724:=:E:6D E@ D6== E9@D6 4C65:ED 2?5 8F2C2?E66:?8 :?4@>6 E9C@F89@FE E96 J62C]k^Am

kAm%96 x?7=2E:@? #65F4E:@? p4E[ A2DD65 :? a_aa[ :?4=F565 E96 cd+ 4C65:E E@ DEC62>=:?6 3:@5:6D6= 2?5 DFDE2:?23=6\2G:2E:@?\7F6= E2I 4C65:ED 2?5 6?4@FC286 C65F465 6>:DD:@?D] %96 “~?6 q:8 q62FE:7F= q:== p4E” 6IE6?565 E96 E2I 4C65:E EH@ J62CD[ ?@H 6IA:C:?8 2E E96 6?5 @7 a_ah] %96 =2E6DE 492?86D 2=D@ C6DEC:4E 7665DE@4<D E@ }@CE9 p>6C:42 2?5 C65F465 E96 DFDE2:?23=6\2G:2E:@?\7F6= C2E6 E@ S` A6C 82==@? 368:??:?8 :? a_ae]k^Am

kAm~?6 @7 E96 >@DE D:8?:7:42?E 492?86D E@ cd+ :D 2 AC@G:D:@? 6I4=F5:?8 6>:DD:@?D 2DD@4:2E65 H:E9 :?5:C64E =2?5\FD6 492?86 7C@> 2 7F6=’D 42C3@?\:?E6?D:EJ D4@C6] t=:>:?2E:?8 E96 A6?2=EJ 42? 564C62D6 42C3@?\:?E6?D:EJ D4@C6D @7 46CE2:? =2?5\32D65 4@?G6?E:@?2= 3:@7F6=D DF49 2D 4@C? 6E92?@= 2?5 D@J 3:@5:6D6= 3J 5:DC682C5:?8 2D >F49 2D a_–ad 8 r~a6^|y[ J:6=5:?8 :?4C62D65 A6C\82==@? E2I 4C65:ED 7@C E9@D6 7F6=D] %96 :?5FDECJ :D DE:== H2:E:?8 E@ D66 9@H E96 %C62DFCJ s6A2CE>6?E 2?5 x?E6C?2= #6G6?F6 $6CG:46 255C6DD E96 C6>@G2= @7 E96 A6?2=EJ H:E9:? E96 42C3@?\:?E6?D:EJ D4@C6D]k^Am

kAmp=E9@F89 cd+ AC6D6?ED ?6H @AA@CEF?:E:6D 7@C 6E92?@= AC@5F46CD 2?5 @E96C 3:@7F6= 724:=:E:6D E@ 42AEFC6 D:8?:7:42?E E2I 4C65:ED[ :E >2J =:>:E 5:C64E AC@7:E A@E6?E:2= 7@C 72C>6CD] &?=6DD 3:@7F6= AC@5F46CD 2C6 H:==:?8 E@ A2J AC6>:F>D 7@C C65F465\42C3@?\:?E6?D:EJ 7665DE@4<D[ 72C>6CD >2J ?@E D66 DF3DE2?E:2= 7:?2?4:2= 82:?D 7C@> E96 cd+ AC@8C2>] %96 :?46?E:G6 DECF4EFC6 AC:>2C:=J 36?67:ED 724:=:E:6D E92E 42? >@?6E:K6 E96 4C65:ED 3J C65F4:?8 E96:C @G6C2== 42C3@?\:?E6?D:EJ D4@C6D C2E96C E92? E9@D6 DFAA=J:?8 E96 C2H 28C:4F=EFC2= >2E6C:2=D] %96 A2DE 25>:?:DEC2E:@? AF3=:D965 :?E6C:> 8F:52?46 E92E H@F=5 2==@H 42C3@?\:?E6?D:EJ D4@C6D E@ 25;FDE[ 32D65 @? 46CE2:? 4=:>2E6\D>2CE 28C:4F=EFC2= AC24E:46D DF49 2D ?@\E:== 2?5 4@G6C 4C@AD] qFE :E’D F?<?@H? H96E96C E96 4FCC6?E 25>:?:DEC2E:@? H:== C6G:D:E 4=:>2E6\D>2CE 28C:4F=EFC2= AC@G:D:@?D]k^Am

kAmp 4@?G6?E:@?2= 6E92?@= A=2?E AC@5F4:?8 `__ >:==:@? 82==@?D @7 6E92?@= A6C J62C 42? BF2=:7J 7@C 2 42C3@?\:?E6?D:EJ C2?86 AC@G:5:?8 2 4C65:E 2>@F?E @7 `_ E@ a_ 46?ED A6C 82==@?[ H:E9 D@>6 A=2?ED 23=6 E@ BF2=:7J 7@C 2? :?4C62D65 4C65:E] tE92?@= A=2?ED 23=6 E@ 42AEFC6 2?5 D6BF6DE6C 42C3@? 5:@I:56 42? C65F46 E96:C 42C3@? :?E6?D:EJ 3J 2D >F49 2D bb A@:?ED[ E96C63J BF2=:7J:?8 7@C 2D >F49 2D ee 46?ED A6C 82==@? F?56C cd+] r~a D9:A>6?ED 92G6 4@>>6?465 @? E96 %2==8C2DD %C2:=3=2K6C A:A6=:?6[ H9:49 42CC:6D r~a 7C@> D6G6C2= A=2?ED =@42E65 :? }63C2D<2 E@ 2 D6BF6DEC2E:@? D:E6 :? (J@>:?8] %96 6E92?@= A=2?ED =@42E65 @? E96 %C2:=3=2K6C\A:A6=:?6 C@FE6 3682? EC2?D24E:?8 cd+ D2=6D 2E E96 :?4C62D65 2>@F?ED :? E96 7@FCE9 BF2CE6C[ H:E9 :?4C62D65 G2=F6D 2?E:4:A2E65 :? a_ae]k^Am

People are also reading…

Understanding mineral tags can help cattle producers better understand what to provide
Bull breeding soundness exams should not be overlooked
Trend of growing production expenses troubling for agriculture
Finding her niche on family farm: Newman Grove farm wife builds pork business
Missouri cowgirl bakes to fund her trick-riding ambitions
Meristem focuses on reducing crop input costs for farmers
Rollins highlights trade, farm policy progress during Commodity Classic general session
Gustin's Diamond Gelbvieh Annual Production Sale
Heart River Ranch Annual Production Sale
MacDonald Ranches Performance Power 2026 Sale
Variety of fencing meets needs on the farm
Working cattle, then hitting the books
Berwald Red Angus 4th Annual Bull & Female Sale
Thorstenson's Lazy TV Ranch 45th Annual Bull Sale
Feeder cattle prices hit temporary plateau

kAmp D:>:=2C 42C3@?\42AEFC6 2?5 DE@C286 A:A6=:?6 – $F>>:E r2C3@? $@=FE:@?D – 92D DE2==65 :? x@H2 2?5 $@FE9 s2<@E2 5F6 E@ 2 =24< @7 =2?5@H?6C DFAA@CE 2?5 =68:D=2E:G6 D6E324<D] %96 x@H2 #6?6H23=6 uF6=D pDD@4:2E:@? DE2E65 :7 x@H2’D c]f 3:==:@? 82==@?D @7 2??F2= 6E92?@= AC@5F4E:@? 2== 925 2446DD E@ E96 A:A6=:?6 :E 4@F=5 86?6C2E6 >@C6 E92? Sb 3:==:@? @7 255:E:@?2= G2=F6 7@C x@H2 6E92?@= A=2?ED E9C@F89 cd+ E2I 4C65:ED]k^Am

kAmkDEC@?8m$FDE2:?23=6\2G:2E:@?\7F6= :?46?E:G6D 5:>:?:D965k^DEC@?8mk^Am

kAm(:E9 E96 fd\46?ED\A6C\82==@? DFDE2:?23=6\2G:2E:@?\7F6= AC@5F4E:@? 6IEC2 :?46?E:G6 4@>:?8 E@ 2? 6?5[ E96 6?E:46>6?E 7@C 5@>6DE:4 :?G6DE>6?E :? ?6H @C 6IA2?565 DFDE2:?23=6\2G:2E:@?\7F6= 724:=:E:6D :D D:8?:7:42?E=J C65F465] (:E9@FE E9@D6 E2C86E65 5@>6DE:4 :?46?E:G6D[ DFDE2:?23=6\2G:2E:@?\7F6= AC@5F465 H:E9:? E96 &?:E65 $E2E6D >2J :?4C62D:?8=J 36 6IA@CE65 E@ >66E :?4C62D:?8 DFDE2:?23=6\2G:2E:@?\7F6= >2?52E6D :? E96 &?:E65 z:?85@> 2?5 tFC@A62? &?:@? >2C<6ED]k^Am

kAm|2?J C6?6H23=6 5:6D6= 724:=:E:6D :? E96 &]$] 2C6 42A23=6 @7 E@88=:?8 36EH66? AC@5F4:?8 C6?6H23=6 5:6D6= 2?5 DFDE2:?23=6\2G:2E:@?\7F6=] w@H6G6C[ E96 4@DE @7 AC@5F4:?8 DFDE2:?23=6\2G:2E:@?\7F6= 42? 36 EH@ E@ 7:G6 E:>6D >@C6 E92? 4@?G6?E:@?2= 5:6D6=[ 4C62E:?8 2? 64@?@>:4 :?46?E:G6 E@ CF? C6?6H23=6 5:6D6= C2E96C E92? DFDE2:?23=6\2G:2E:@?\7F6= 2E E9@D6 A=2?ED]k^Am

kAm%92E D:EF2E:@? 6I246C32E6D E96 6I:DE:?8 >:D>2E49 36EH66? E96 2G2:=23=6 DFAA=J @7 DFDE2:?23=6\2G:2E:@?\7F6= 2?5 E96 56>2?5 7C@> 2G:2E:@? 42CC:6CD] p44@C5:?8 E@ 2 C6A@CE 7C@> r2C3@? %C24<6C[ 6G6? :7 2== 4FCC6?E 2?5 2??@F?465 DFDE2:?23=6\2G:2E:@?\7F6= AC@;64ED 2C6 4@>A=6E65[ 8=@32= @FEAFE H@F=5 D2E:D7J @?=J d A6C46?E @7 E@E2= ;6E\7F6= 56>2?5 3J a_b_] %92E AC@5F4E:@? =6G6= H@F=5 @77D6E ;FDE `f A6C46?E E@ b_ A6C46?E @7 E96 6IA64E65 56>2?5 8C@HE9 :? E96 2G:2E:@? D64E@C] (@C=5H:56 DFDE2:?23=6\2G:2E:@?\7F6= AC@5F4E:@? 4FCC6?E=J 2>@F?ED E@ 2 >6C6 H66<’D H@CE9 @7 E@E2= 2:C=:?6 7F6= FD6] %96 x?E6C?2E:@?2= p:C %C2?DA@CE pDD@4:2E:@? C6A@CE65 DFDE2:?23=6\2G:2E:@?\7F6= AC@5F4E:@? :? a_ad C6AC6D6?ED @?=J _]e A6C46?E @7 E@E2= ;6E\7F6= 4@?DF>AE:@? 2?5 :D AC@;64E65 E@ :?4C62D6 E@ _]g A6C46?E :? a_ae[ :==FDEC2E:?8 E92E >66E:?8 E96 DFDE2:?23=6\2G:2E:@?\7F6= E2C86E :D F?=:<6=J]k^Am

kAmq:@5:6D6= 2?5 C6?6H23=6 5:6D6= 2C6 4FCC6?E=J >@C6 4@DE=J E@ AC@5F46 E92? 4@?G6?E:@?2= 5:6D6= 7F6=] &?=6DD @:= AC:46D :?4C62D6 D:8?:7:42?E=J[ AC@5F4E:@? H:== 36 5C:G6? 3J 4FCC6?E 3:@7F6= A@=:4:6D DF49 2D E96 7656C2= #6?6H23=6 uF6=D $E2?52C5 2?5 r2=:7@C?:2’D {@H r2C3@? uF6= $E2?52C5] %96 t?G:C@?>6?E2= !C@E64E:@? p86?4J’D 7:?2= #6?6H23=6 uF6=D $E2?52C5 C6?6H23=6 G@=F>6 @3=:82E:@?D 2?5 C62==@42E:@? @7 D>2==\C67:?6CJ 6I6>AE:@?D :DDF65 7@C 42=6?52C\J62CD a_ae 2?5 a_af H:== 5:4E2E6 &]$] 3:@7F6= 4@?DF>AE:@?]k^Am

kAm':D:E k2 9C67lQ9EEADi^^HHH]4@32?<]4@>^Q E2C86ElQ03=2?<QmHHH]4@32?<]4@>k^2m 7@C >@C6 :?7@C>2E:@?]k^Am

Download PDF

Source: Bloomberg

Download PDF

Source: Bloomberg

Jacqui Fatka is lead economist for farm supply and biofuels in CoBank’s Knowledge Exchange research division. During the past 20 years she’s honed her expertise in ag policy, biofuels, trade, regulations, ag labor, climate-smart agriculture and farm management.

CoBank is a $158 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. It’s a member of the Farm Credit System. Visit www.cobank.com for more information.