The US IRS 45Z PER Process Explained

The release of more details regarding the Provisional Emissions Rate (PER) process in the draft update to the 45Z rule published by OMB on February 4, 2026 came as a welcome surprise for low carbon fuels producers not eligible for tax credits using the current version of the 45ZCF-GREET model.

Low carbon fuels producers who process eligible feedstocks under the 45Z program (namely any waste or biomass-based feedstocks) but whose fuel and feedstock combinations are not represented by the 45ZCF-GREET model (i.e. not included in the current emissions rate table), must get a provisional emissions rate (PER) to calculate their tax credit under 45Z. To apply to Treasury for a PER, you must first get an approved Emissions Value Request (EVR) from the Department of Energy (DoE).

The DoE EVR consists of 2 parts: 1) the calculation of the subject facility’s emissions value (EV), following the general requirements established by 45ZCF-GREET, and 2) the completed DoE 45Z EVR form. The DoE 45Z EVR form and associated instructions are not available as of mid-February 2026, but the 45V EVR form and process instructions are available for low carbon hydrogen production on the DoE website. It is assumed that the forms and process will be very similar between 45Z and 45V.

Once an applicant’s EVR is approved and they receive the calculated emissions value letter (CEVL) from DoE, they can submit this letter and form 7218 to Treasury as their PER petition. Once that is approved, applicants can generate tax credits as long as this process is completed prior to the tax filing deadline or extension deadline if an extension was filed.

Potential applicants should note that for emissions reduction due to climate smart ag, the program requires the use of USDA Feedstock Carbon Intensity Calculator (FD-CIC), which is not currently available for use but will likely be published sometime later this year.

If you are a fuels producer who is interested in calculating your provisional emissions rate or pursuing the PER process, TRICORD’s 45ZCF-GREET and R&D GREET lifecycle assessment experts are here to help. For inquiries, please contact our low carbon fuels team lead, Hannah Losey P.E., at Hannah.Losey@tricordconsulting.com.