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Senate committee advances bill to expand sustainable aviation fuel tax credit with environmental guardrails
Summary
Senate File 13,12 drew broad bipartisan and stakeholder support in the Senate Taxes Committee: the committee adopted amendments adding environmental guardrails and laid the bill over for inclusion in the tax bill, with proponents saying the credit will grow Minnesota markets for cover crops, forest residues and job creation.
Senate File 13,12, which would expand and refine Minnesota's sustainable aviation fuel (SAF) tax credit and add environmental safeguards, received extended testimony and was laid over by the Senate Taxes Committee on April 14.
Sponsor remarks and multiple witnesses described SAF as a cleaner, drop-in replacement for petroleum-based jet fuel. Andrea (Deputy Commissioner, Minnesota Department of Agriculture) said the administration is "enthusiastic support for Senate File 13,12 as amended" and highlighted feedstocks including "woody biomass...agricultural crops like corn and soybeans, cover crops like winter hardy oilseed" and waste materials. She and other witnesses argued SAF can reduce aviation greenhouse-gas emissions, create rural jobs and support new markets for farmers.
Environmental groups urged guardrails. Steve Morris, executive director of the Minnesota Environmental Partnership, told the committee the bill's amended language is needed to prevent fuels produced using enhanced oil recovery and other high-impact pathways from receiving the higher credit levels; he said, "SAF with guardrails is better for our health and natural resources than SAF with no guardrails." Agriculture, forestry and industry witnesses — including Hunter Petersen (Minnesota Farmers Union), Tom Brady (Minnesota Forest Industries), Nick Jordan (University of Minnesota Forever Green Initiative) and Peter Frosh (Minnesota SAF Hub) — described how winter-hardy oilseeds, forest residues and processing projects could scale supply and bring jobs to Greater Minnesota.
Committee members adopted a technical amendment (A4) and laid the bill over for possible inclusion on the tax bill. Sponsors and several senators characterized the measure as bipartisan and emphasized the need for timely tax certainty to attract private investment for blending facilities and production that proponents say are already under development.
The committee did not record a roll-call on the layover; actions were announced by voice vote and the bill will return for further consideration.
