Par. 3. Sections 1.45Z-4 through 1.45Z-6 are added to read as follows:
(a) In general. This section provides rules on certification from an unrelated person for sustainable aviation fuel (SAF) transportation fuel pursuant to section 45Z(f)(1)(A)(i)(II) of the Code.
(b) Certification requirements —(1) In general. For each taxable year for which a taxpayer claims a section 45Z credit for SAF transportation fuel, the taxpayer must obtain certification from an unrelated person and include such certification with the taxpayer's Form 7218, which is filed with the taxpayer's Federal income tax return or Federal information return, for each qualified facility at which the taxpayer produces SAF transportation fuel.
(2) Content. The certification described in paragraph (b)(1) of this section must be prepared by a qualified certifier and signed by the qualified certifier under penalty of perjury. The certification must contain information that is in substantially the same form as the model certification provided in paragraph (h) of this section and must contain all information necessary to complete the model certification. Specifically, the certification must include—
(i) A production statement described in paragraph (c) of this section from the qualified certifier regarding the production of SAF transportation fuel, including that the inputs used to determine the lifecycle greenhouse gas (GHG) emissions rate of the production process are accurate;
(ii) A conflict statement described in paragraph (d) of this section from the qualified certifier regarding conflicts of interest;
(iii) A qualified certifier statement described in paragraph (e) of this section from the qualified certifier providing information regarding the qualified certifier, including documentation of the qualified certifier's qualifications;
(iv) A qualified facility statement described in paragraph (f) of this section from the qualified certifier providing certain general information about the qualified facility at which the SAF transportation fuel production undergoing certification occurred;
(v) Any documentation necessary to substantiate the certification process given the standards and best practices prescribed by the qualified certifier's accrediting body as they apply to the circumstances of the taxpayer and the qualified facility; and
(vi) Any other information or documentation required by applicable IRS tax forms or form instructions.
(3) Qualified certifier —(i) CORSIA methodologies. For taxpayers using the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Default Life Cycle Emissions Values for CORSIA Eligible Fuels lifecycle approach (CORSIA Default) or the CORSIA Methodology for Calculating Actual Life Cycle Emissions Values lifecycle approach (CORSIA Actual) to determine the emissions rate for SAF transportation fuel, the term qualified certifier means any individual or organization that is unrelated to the taxpayer and is not an employee of the taxpayer, and that has an active accreditation from International Sustainability and Carbon Certification, Roundtable on Sustainable Biomaterials, ClassNK, or other sustainability certification scheme approved by the ICAO.
(ii) 45ZCF-GREET model. For taxpayers using the 45ZCF-GREET model to determine the emissions rate for SAF transportation fuel, the term qualified certifier means any individual or organization that is unrelated to the taxpayer and is not an employee of the taxpayer, and that has an active accreditation—
(A) From the American National Standards Institute National Accreditation Board to conduct validation and verification in accordance with the requirements of International Organization for Standardization (ISO) 14065; or
(B) As a verifier, lead verifier, or verification body under the California Air Resources Board Low Carbon Fuel Standard (CARB LCFS) program.
(iii) Qualifications are methodology specific. Qualified certifiers are qualified to provide certification only for the associated methodologies identified in this paragraph (b)(3). A qualified certifier must have active accreditation for the associated methodology as of the date it provides a certification to a taxpayer. A taxpayer must use the qualified certifier identified in this paragraph (b)(3) for the identified emissions rate methodology used by the taxpayer.
(c) Requirements for the production statement. The requirements set forth in this paragraph (c) apply to the production statement required by paragraph (b)(2)(i) of this section. See section 45Z(f)(1)(A)(i)(II)(aa).
(1) Data accuracy. The production statement must be a statement that the qualified certifier performed a certification sufficient for the IRS to determine that any lifecycle GHG emissions data inputs and the operation, during the applicable taxable year, of the qualified facility that produced the SAF transportation fuel for which the section 45Z credit is claimed are accurately reflected in—
(i) The number of gallons of SAF transportation fuel produced by the taxpayer that is entered on the Form 7218 with which the certification is included; and
(ii) Either—
(A) The data the taxpayer input into the allowed methodology under § 1.45Z-2(e)(3) used to determine the lifecycle GHG emissions rate that is entered on the Form 7218 with which the certification is included; or
(B) The data the taxpayer submitted in its provisional emissions rate (PER) petition relating to the SAF transportation fuel for which the taxpayer is claiming the section 45Z credit, including data provided to the U.S. Department of Energy (DOE) in support of the taxpayer's request for the emissions value provided in the PER petition.
(2) Emissions value. If the production statement includes the information specified in paragraph (c)(1)(ii)(B) of this section, then the production statement must also specify the emissions value received from the DOE that was calculated using such data, expressed in kilograms of equivalent carbon dioxide (CO 2 e) per 1,000,000 British thermal units (mmBTU).
(3) Lifecycle GHG emissions rate and production amount. The production statement must specify the lifecycle GHG emissions rate (expressed in kilograms of CO 2 e per mmBTU) and the amount of SAF transportation fuel produced by the taxpayer (expressed in gallons), that are entered on the Form 7218 with which the certification is included.
(d) Requirements for the conflict statement —(1) In general. The conflict statement required by paragraph (b)(2)(ii) of this section must state that—
(i) The qualified certifier has not received a fee based to any extent on the value of any section 45Z credit that has been or is expected to be claimed by the taxpayer and no arrangement has been made for such fee to be paid at any time in the future;
(ii) The qualified certifier has not been a party to any transaction involving the sale of SAF transportation fuel the taxpayer produced or in which the taxpayer purchased primary feedstocks for the production of such SAF transportation fuel;
(iii) The qualified certifier is unrelated to the taxpayer, within the meaning of section 52(b) and the regulations thereunder, and is not an employee of the taxpayer; and
(iv) The qualified certifier is not married to anyone who is related to, or an employee of, the taxpayer.
(2) Additional attestations required in certain circumstances. If the qualified certifier is acting in his or her capacity as a partner in a partnership, an employee of any person, whether an individual, corporation, or partnership, or an independent contractor engaged by a person other than the taxpayer, the attestations under paragraphs (d)(1)(i) through (iv) of this section must also be made with respect to the partnership or the person that employs or engages the qualified certifier.
(e) Requirements for the qualified certifier statement. The qualified certifier statement required by paragraph (b)(2)(iii) of this section must include the items set forth in this paragraph (e):
(1) Certifier identifying information. The qualified certifier's name, address, and certifier identification number (for example, the CARB LCFS Verifier Executive Order Number);
(2) Qualification description. The qualified certifier's qualifications to conduct the certification, including a description of the certification the qualified certifier received from the accrediting body;
(3) Partnership or employer identifying information. If the qualified certifier is acting in his or her capacity as a partner in a partnership, an employee of any person, whether an individual, corporation, or partnership, or an independent contractor engaged by a person other than the taxpayer, the name, address, and certifier identification number of the partnership or the person that employs or engages the qualified certifier;
(4) Signature. The signature of the qualified certifier and the date of signature; and
(5) Certification purpose. A statement that the certification was conducted for Federal tax purposes.
(f) Requirements for the qualified facility statement. The qualified facility statement required by paragraph (b)(2)(iv) of this section must include the information set forth in this paragraph (f) for the qualified facility at which the SAF transportation fuel production undergoing certification occurred:
(1) Facility location. The location of the qualified facility;
(2) Facility description. A description of the qualified facility, including its method of producing SAF transportation fuel;
(3) Primary feedstock. The type(s) of primary feedstock(s) used by the qualified facility to produce the SAF transportation fuel during the taxable year of production;
(4) Amount of primary feedstock. The amount(s) of primary feedstock(s) used by the qualified facility to produce the SAF transportation fuel during the taxable year of production;
(5) Primary feedstock source location. The location(s) from which the qualified facility sourced the primary feedstock(s) used to produce the SAF transportation fuel during the taxable year of production;
(6) Metering devices. A list of the metering devices used to record any data used by the qualified certifier to support the production statement under paragraph (c) of this section, along with a statement that to the best of the certifier's knowledge, the device(s) underwent industry-appropriate quality assurance and quality control, and the accuracy and calibration of the device has been tested in the year prior to the time of observation by the qualified certifier; and
(7) Emissions rate accuracy. Confirmation that the emissions rate of the SAF transportation fuel produced during the taxable year of production is accurate to the higher of +/−5% or 2 kilograms of CO 2 e per mmBTU.
(g) Timely certification required. A certification described in paragraph (b)(1) of this section that includes all information required under paragraph (b)(2) of this section is valid with respect to a particular claim only if it is signed and dated by the qualified certifier no later than the due date, including extensions, of the Federal income tax return or Federal information return for the taxable year during which the SAF transportation fuel undergoing certification is sold in a qualified sale. In the case of a section 45Z credit first claimed for the taxable year on an amended return or administrative adjustment request (AAR), a certification described in paragraph (b)(1) of this section that includes all information required under paragraph (b)(2) of this section is valid with respect to the claim only if it is signed and dated by the qualified certifier no later than the date on which the amended return or AAR is filed.
(h) Model certification.
Certification of Lifecycle Greenhouse Gas Emissions Rates for Sustainable Aviation Fuel Production
Certification Identification Number:__________
(To support taxpayer's claim related to sustainable aviation fuel (SAF) under section 45Z of the Internal Revenue Code.)
The undersigned qualified certifier (“Certifier”) hereby certifies the following:
This certificate applies to SAF produced by __________ (“SAF Producer”). __________(name, address, and EIN of SAF producer)
Registration number of the SAF producer: __________
Number of gallons of SAF produced to which this certification relates: __________
Lifecycle greenhouse gas emissions rate expressed in kilograms of CO 2 e per mmBTU: __________
___: Initial here to affirmatively confirm that the emissions rate is accurate to the higher of +/−5% or 2 kilograms of CO 2 e per mmBTU.
Taxable year SAF undergoing certification was produced: __________
Location of qualified facility at which the SAF production undergoing certification occurred (“Facility”): __________
Facility description including its method of producing SAF: