Minnesota lawmakers hear push to scale sustainable aviation fuel industry, with feedstock and verification questions

Members of the Minnesota House Ag Finance and Policy Committee heard testimony on sustainable aviation fuel (SAF) on the committee’s opening meeting day, focusing on how the state can scale production, what feedstocks to prioritize and how to verify carbon reductions.

Deputy Commissioner Andrea Vawbel of the Minnesota Department of Agriculture told the committee that Minnesota’s 2023 SAF tax credit was designed “to stack on top of federal IRA tax credits for SAF production” and called the state policy a competitive advantage for attracting producers and blenders to Minnesota.

The issue matters to lawmakers because aviation is a hard-to-decarbonize sector and airlines and industry groups say SAF will be a central lever in reducing emissions. Jeff Davison of Delta Airlines told the committee, “SAF will make up about 60% of our efforts to get to our net 0 goal,” and described airlines’ demand targets and current supply constraints.

Panelists from the private sector and agriculture groups outlined feedstock pathways and economic opportunities. Peter Frosh of Greater MSP described the Minnesota SAF Hub’s public-private effort and cited a $5 billion DG Fuels proposal to build a refinery near Moorhead that would produce about 193 million gallons of SAF; Greater MSP said a first set of three refineries could support tens of thousands of construction- and operational-era jobs. Brian Werner of the Minnesota Biofuels Association urged development of an ethanol-to-jet pathway, saying Minnesota ethanol infrastructure makes the state “ready to fully participate” in scaled SAF production.

Minnesota farm groups told the panel that corn and soy-based pathways could play large roles but will be only part of an “all of the above” approach. Amanda Bilic, senior public policy director for the Minnesota Corn Growers Association, said farm-level data run through the DOE GREET feedstock calculator showed a 31% reduction in feedstock carbon intensity compared with average model values and argued that corn-derived alcohol-to-jet pathways are abundant and can use existing infrastructure.

Speakers also raised integrity and verification concerns. Frosh and others said Minnesota needs consistent, transparent carbon accounting and third-party validation. Frosh said the SAF Hub will push for national leadership on measurement and averaging, and Jeff Davison and several farm and conservation witnesses emphasized the importance of measuring life-cycle carbon and managing water-quality and biodiversity outcomes.

Industry witnesses warned of possible gaming of credits through imported or mischaracterized feedstocks. Joe Smedek of the Minnesota Soybean Growers Association said policymakers should guard against schemes in which imported virgin oils are presented as used cooking oil, and urged the state to use local certification data to avoid penalizing Minnesota producers for “indirect land use change” that happened elsewhere.

Forestry interests also testified that woody residues and mill residuals offer low-carbon feedstock potential; Rick Horton of the Minnesota Forest Industries Association said studies indicate wood-based SAF can achieve carbon-intensity reductions “of up to 80%” and urged use of waste material and third-party forest-management certification to protect ecological values.

Committee members asked technical questions about GREET and carbon accounting, how fertilizer and manure factors are counted, and how permitting timelines and state matching funds could affect investor decisions. Several witnesses urged faster and more predictable permitting and continued state incentives to leverage federal tax credits.

The committee did not vote on legislation during the hearing. Members indicated continued interest in SAF policy this session and asked staff and witnesses to provide additional technical data on carbon accounting, permitting timelines and local feedstock supply estimates.

Ending: The session closed with committee members saying they will continue to follow the SAF Hub’s progress and the potential state incentives; witnesses asked to remain available for follow-up technical briefings.