The Biden administration is set to reveal a significant shift in its scientific modeling for ethanol, indicating that the fuel is less effective in reducing greenhouse gas emissions than previously estimated, according to Reuters.

The adjustment will make it more challenging for ethanol producers to access new U.S. tax credits for sustainable aviation fuel. However, they can still qualify for the tax credits if they collaborate with corn growers using sustainable farming practices.

The amendment aims to more accurately consider the environmental impact of converting land into farms to grow corn, while also incentivizing climate-smart farming techniques such as no-till farming and covered crops, as reported by Reuters.

The Inflation Reduction Act, a key climate bill spearheaded by President Biden, includes a $1.25/gallon tax credit for sustainable aviation fuel producers. The administration aims to deliver a minimum of 3 billion gallons per year of sustainable aviation fuel by 2030 as part of its broader initiative to decarbonize the transport sector.