Committee considers broadening sustainable aviation fuel definition to include CO2‑derived pathways

Sen. Westrom introduced Senate File 1515 to modify Minnesota's definition of sustainable aviation fuel so it may include fuels produced using captured carbon dioxide, the committee heard March 10, 2025.

Anjali Baines, who leads transportation policy at Fresh Energy, testified in support and urged the committee to include green electrolytic hydrogen as an eligible pathway and to expand subdivision language to explicitly allow CO2 captured from point‑source industrial processes (for example, steel or cement plants) in addition to biomass and direct air capture. Baines said green electrolytic hydrogen combined with captured CO2 can produce a low‑carbon liquid hydrocarbon suitable for SAF and that including multiple CO2 pathways would support development of a Minnesota SAF industry while lowering lifecycle greenhouse‑gas emissions.

Senate counsel and staff discussed drafting alignment with another bill previously heard in the tax committee (Senate File 1312) that modified the same subdivision to refer to "gaseous carbon oxides." Legislative counsel advised that matching language would align the bills; staff also noted the default policy effective date would be Aug. 1 unless sponsors specify otherwise. A fiscal note was reported as completed showing no administrative fiscal impact. Committee members asked about revenue impacts and federal tax credit interactions; witnesses said revenue effects were not estimated in the committee and federal credits (IIJA/IRA) may change over time, creating uncertainty.

Senate File 1515 was laid over for possible inclusion.