Welcome to the 45z.org glossary! This resource is meant to help you sort through the complex jargon of sustainable fuels and land-use programs. Below, you will find definitions and explanations of key terms used in discussions about the 45Z tax credit and related topics. As such, this glossary will be updated as new words and phrases come on the scene. Let us begin.

Glossary of Terms

Biodiesel

Biodiesel is a renewable fuel made from various feedstocks, including vegetable oils, animal fats, and recycled cooking oil. It can be used in diesel engines and produces fewer emissions than traditional diesel.

Blending Credits

Blending credits are incentives provided to fuel producers and blenders for incorporating renewable fuels into their products. For example, airlines might receive credits for adding sustainable aviation fuel (SAF) containing ethanol or biofuels to their broader jet fuel pool. These credits encourage the use of cleaner fuels.

Carbon Sequestration

Carbon sequestration is the process of capturing and storing carbon dioxide from the atmosphere.

CI Score (Carbon Intensity Score)

The CI Score measures how much carbon dioxide is emitted per unit of energy or fuel. It is a primary metric for evaluating the environmental impact of different fuels. A lower CI Score indicates a lower ecological impact. In the context of agriculture, the CI Score often refers to the production footprint assigned to a bushel of corn or soy. One of 45Z’s primary goals is to lower the average CI Score of conventional agriculture nationwide.

Ethanol

Ethanol is an alcohol-based fuel made from the fermentation of sugar or starch crops, such as corn and sugarcane. It is commonly blended with gasoline to reduce greenhouse gas emissions and dependence on fossil fuels. Thus, ethanol is an important component of American energy production and sovereignty.

Feedstock

Feedstock refers to the raw materials used to produce biofuels. Common feedstocks include corn, soybeans, and various waste products. The choice of feedstock affects the CI Score of the biofuel.

GREET Model (Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation Model)

Developed by the Argonne National Laboratory, the GREET Model evaluates the energy use and emissions of different fuels and vehicle technologies throughout their lifecycle. It measures the environmental impacts from raw material extraction to end use, including total energy use, fossil fuel consumption, greenhouse gas emissions, air pollutants, and water use. The Inflation Reduction Act of 2022 §45V specifies GREET for calculating lifecycle emissions for clean hydrogen production to determine tax credits. This model helps researchers and policymakers make better decisions about sustainable transportation and energy solutions. Because of this, the GREET Model has become the cornerstone of 45Z and related IRA energy credits.

Inflation Reduction Act (IRA)

The Inflation Reduction Act (IRA) of 2022 is a significant piece of legislation aimed at addressing inflation, reducing the federal deficit, and investing in domestic energy production and manufacturing. It includes provisions for various clean energy and climate initiatives, such as tax credits like 45Z and the promotion of clean hydrogen production using models like GREET.

Lifecycle Analysis (LCA)

LCA is a method used to assess the environmental impacts of a product from its creation to disposal. For fuels, it includes all emissions and energy use from production to end use. The GREET Model is an example of a method that uses LCA.

Renewable Fuel Standard (RFS)

The Renewable Fuel Standard (RFS) is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. It aims to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil. Compliance is tracked using Renewable Identification Numbers (RINs) assigned to batches of renewable fuel.

Renewable Identification Number (RIN)

An RIN is a unique number assigned to each batch of renewable fuel produced or imported into the United States. It tracks production and ensures compliance with the Renewable Fuel Standard (RFS) in the U.S.

SAF (Sustainable Aviation Fuel)

SAF is a type of aircraft biofuel. It is produced from sustainable resources, such as waste oils and agricultural residues, and has a lower carbon footprint compared to conventional jet fuel.

Conclusion

We at 45z.org hope this glossary helps demystify some of the terminology you will inevitably encounter in 45Z and biofuel industry discourse. Understanding these terms is a necessary step in engaging with the 45Z tax credit and making informed decisions about participation in the initiative.

Are there any terms you feel are missing? Feel free to email jbartling@landoption.com with any questions or requests!