USDA Publishes Interim Rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks

The U.S. Department of Agriculture (USDA) announced the publication of an interim rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks. The interim rule establishes guidelines for quantifying, reporting, and verifying the greenhouse gas (GHG) emissions associated with the production of biofuel feedstock commodity crops grown in the United States. These guidelines will facilitate the recognition of climate-smart agriculture within clean transportation fuel programs, creating new market opportunities for biofuel feedstock producers while enhancing climate benefits.

“The new guidelines are a win for farmers, biofuel producers, the public, and the environment. The action today marks an important milestone in the development of market-based conservation opportunities for agriculture,” said Agriculture Secretary Tom Vilsack. “Today’s action also builds on the Biden-Harris Administration’s historic work to create greater opportunity for homegrown, renewable biofuels. From making E15 more widely available at gas station pumps and approving record biofuel levels, to investing in infrastructure to help communities invest in biofuels, to accelerating a future for Sustainable Aviation Fuels, this Administration created pathways for economic growth that will reverberate for generations to come.”

“America’s farmers play a critical role in building the clean energy economy,” said White House Senior Advisor for International Climate Policy John Podesta. “Today’s announcement from USDA reinforces the important role climate-smart agriculture plays in our rural economy, including in fueling clean transportation solutions, as well as the importance of providing pathways for unbundled, science-based accounting of the carbon benefits of climate-smart practices that help farmers earn more for what they grow.”

The rule issued today establishes a framework to connect climate-smart agriculture (CSA) practices applied in the production of feedstock crops with reductions in the carbon footprint of biofuels. The rule includes three feedstock crops: corn, soy, and sorghum. It also covers CSA practices that could reduce GHG emissions or sequester carbon, including reduced till and no-till; cover cropping; and nutrient management practices, such as the use of nitrification inhibitors. Importantly, the interim rule allows for adoption of CSA practices both individually or in combination. This means that participating farmers would have the flexibility to adopt the CSA practices that make sense for their operation, while still being able to produce feedstocks with reduced carbon intensities under the rule.

Through this interim rule, USDA is establishing standards that can be used to quantify, track, and report the impacts of these practices. The interim rule establishes voluntary guidelines that may inform the development of requirements for other programs which incentivize low-carbon biofuels.

Establishing quantification and verification standards for climate-smart practices helps to ensure that the net GHG emissions reductions from these practices are real, thereby improving credibility and confidence, which could facilitate market opportunities for U.S. farmers growing biofuel feedstocks. In addition to reducing GHG emissions and increasing carbon sequestration, CSA practices can also generate additional environmental benefits, including improved water quality and soil health.

The interim rule includes guidelines on the following:

1. Biofuel feedstock crops and entities in the biofuel supply chain;
2. Quantification of farm-level crop-specific carbon intensity;
3. Chain of custody standards for entities in the biofuel supply chain, including traceability and recordkeeping standards;
4. Auditing and verification requirements; and
5. Climate-smart agriculture practice standards for the biofuel feedstock crops included under the rule.

USDA is also publishing a beta version of the USDA Feedstock Carbon Intensity Calculator (USDA FD-CIC) to facilitate the quantification of farm-level crop-specific carbon intensity. USDA FD-CIC allows for the calculation of a farm-scale carbon intensity in line with the standards in the interim rule. USDA will complete a peer-review process to finalize the methodology and resulting carbon intensities included in USDA FD-CIC. USDA will evaluate and respond to the public feedback and peer-review provided on USDA FD-CIC, after which USDA will establish a final version. Until that time, users should consider values from USDA FD-CIC as preliminary. As part of this process of testing and feedback prior to finalization, the public will have the opportunity to examine and download USDA FD-CIC to experience how it would operate.

USDA is requesting public comment on the interim rule to help inform future revisions or additions to the final rule. Interested parties are welcome to submit comments on any aspect of the rule. The interim rule will be posted for public inspection on January 16 on www.regulations.gov and will be published on January 17. Interested parties may submit comments during the 60-day public comment period.

Learn more about this interim rule, or contact Bill Hohenstein, Director of the Office of Energy and Environmental Policy at William.hohenstein@usda.gov or 202-720-4165.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy, and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.