On March 20, the House Appropriations Ag Subcommittee held hearing on USDA’s FY 2025 budget requests. The Subcommittee heard from USDA Secretary Tom Vilsack regarding USDA’s fiscal year (FY) 2025 budget request, totaling $25.1 billion, representing a $2.2 billion increase from the previous year. During the hearing, Secretary Vilsack discussed two tax credits, 40B and 45Z, related to sustainable aviation fuel production and the Treasury’s awaited announcement of the updated Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) life cycle analysis model. He emphasized the importance of properly signaling the use of sustainable agriculture practices to qualify for these credits. Secretary Vilsack expressed confidence that measures like no-till cover crops and energy-efficient fertilizers would be recognized as contributing to sustainability. Additionally, he mentioned the potential for a broader conversation on including more aspects of climate-smart agriculture in future considerations. Overall, Secretary Vilsack said he believes the right signals will be sent and that farmers will play a crucial role in developing sustainable aviation fuel.
Representative Ashley Hinson (R-IA) addressed Secretary Vilsack regarding the impacts of biofuels on the economy and the importance of supporting American farmers. Representative Hinson expressed concerns about the revisions to the GREET model and its potential effects on Iowa farmers. She sought an update on the status of the revision and emphasized the need to ensure that scientists are driving the review process.
Representative Hinson told Secretary Vilsack: “As a fellow Iowan, you know the impacts of the biofuels industry on our economy, the importance of supporting American farmers as they’re growing crops that feed and fuel the world and the administration’s revisions to the GREET model which will affect, of course, the value that Iowa farmers are able to receive for their products is absolutely critical for industry and for long-term. And it’s really important that Iowa farmers are recognized not only for their conservation practices, but I certainly appreciate your work to advocate for our farmers as this model is being revised. So, I’m wondering… if you can provide an update for us on the status of that revision for GREET and thoughts to ensure that scientists are driving that review of GREET?”
Secretary Vilsack said “there are two tax credits that are involved here at 40B and 45Z. Critically, we want to make sure the signals are properly sent on 40B, so first and foremost was getting an acknowledgment and appreciation for the use of the GREET model, which we’ve been able to accomplish. And now is making sure that the Treasury Department and others are fully aware of what steps farmers do in fact take to be more sustainable in the production of corn, soybeans as a feedstock for sustainable aviation fuel. I’m confident that there’s a recognition that no till cover crops, energy efficient fertilizer are the kinds of things that ought to be included as factors to calculate whether or not a particular sustainable aviation fuel meets the threshold of more than 50% improvement. So, I’m confident we’re going to send the right signal. And then I think there is an opportunity for a much broader conversation on 45Z, to see whether or not there are other aspects of climate smart agriculture or sustainable agriculture that ought to be considered. I think the right signal is going to be sent. I think there’s a recognition that farmers are going to play an integral role in the development of this fuel.”