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Bill creates LCFS for aviation, expands SAF tax credits, funding

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By Erin Voegele

April 26, 2023

PolicyBusiness

Reps. Julia Brownley, D-Calif., and Brad Schneider, D-Ill., on April 20 introduced the Sustainable Aviation Fuel Act, which aims to support the use of SAF via tax credits and the establishment of an aviation-only LCFS.

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The European Commission announced on April 26 that a political agreement has been reached on the REFuelEU Aviation proposal, which creates a mandate requiring the use of sustainable aviation fuel (SAF).

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Clean Fuels Alliance America has welcomed an amendment from Rep. Jodey Arrington, R-Texas, to the Limit, Save, Grow Act of 2023. The amendment would preserve the biodiesel and renewable diesel blenders credit as it is in current law.

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The European Commission announced on April 26 that a political agreement has been reached on the REFuelEU Aviation proposal, which creates a mandate requiring the use of sustainable aviation fuel (SAF).

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Reps. Julia Brownley, D-Calif., and Brad Schneider, D-Ill., on April 20 introduced the Sustainable Aviation Fuel Act, which aims to support the use of SAF via tax credits and the establishment of an aviation-only LCFS.

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The looming battle over the U.S. debt ceiling could result in the repeal of the sustainable aviation fuel (SAF), clean fuels, clean hydrogen and renewable diesel/biodiesel tax credits, along with the scaling back of the 45Q tax credit for CCS.

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The looming battle over the U.S. debt ceiling could result in the repeal of the sustainable aviation fuel (SAF), clean fuels, clean hydrogen and renewable diesel/biodiesel tax credits, along with the scaling back of the 45Q tax credit for CCS.

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The U.S. EPA has released data showing nearly 1.91 billion RINs were generated under the RFS in March, up from 1.82 billion generated during the same period of last year. Total RIN generation for the first quarter of 2023 reached 3.63 billion.

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Transitioning to E15 from E10 in Minnesota would contribute $1.06 billion to Minnesota's GDP, according to a new study by ABF Economics. The move to E15 would increase ethanol demand, benefits consumers and the economy, and reduce GHG emissions.

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The U.S. EPA on April 20 released new data on small refinery exemptions (SREs) that indicates two additional SRE petitions have been filed under the RFS during the past month. A total of 27 SRE petitions are now pending.

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Representatives of the U.S. ethanol industry urged the U.S. EPA to take immediate action to make E15 available during the summer 2023 driving season in comments submitted to the agency on April 20 as part of its Midwest E15 rulemaking.

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The U.S. EPA on April 20 released new data on small refinery exemptions (SREs) that indicates two additional SRE petitions have been filed under the RFS during the past month. A total of 27 SRE petitions are now pending.

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The European Parliament on April 18 voted 463 to 117 to implement a revision to the European Union's Emissions Trading System that will phase out free allowances for the aviation sector by 2026 and promote the use of sustainable aviation fuel (SAF).

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Members of the House Ag Committee grilled EPA Administrator Michael Regan on the agency's low proposed RFS RVOs for biomass-based diesel, delays in implementing year-round E15 waivers, and GHG tailpipe emission standards during an April 19 hearing.

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Members of the House Ag Committee grilled EPA Administrator Michael Regan on the agency's low proposed RFS RVOs for biomass-based diesel, delays in implementing year-round E15 waivers, and GHG tailpipe emission standards during an April 19 hearing.

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In advance of a Senate subcommittee hearing on April 17 on the importance of cleaner vehicles, the RFA stressed the importance of renewable fuels like ethanol in providing “an effective and immediate solution for reducing carbon emissions."

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A report filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network on April 11 discusses Colombia's March 15 decision to extend its existing 20-cent-per-gallon duty on U.S. ethanol for the next five years.

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The U.K.'s Jet Zero Council on April 17 released a two-year plan that describes how it will support the government's goal to reach Jet Zero by 2050, including how the council will help accelerate the production of sustainable aviation fuel (SAF).

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The U.S. EPA on April 17 announced plans to comply with the consultation requirements of the Endangered Species Act as part of its upcoming RFS “set� rule under a proposed settlement agreement related to a legal challenge filed by CBD.

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RAF Voyager refuels mid-air with SAF

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By U.K. Ministry of Defence

April 17, 2023

The Royal Air Force has successfully completed a Voyager air-to-air refueling flight, powered by an approximately 43 percent blend of SAF. The SAF for the flight was sourced by International Airlines Group, and supplied by bp.

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The U.S. EPA on April 17 announced plans to comply with the consultation requirements of the Endangered Species Act as part of its upcoming RFS “set� rule under a proposed settlement agreement related to a legal challenge filed by CBD.

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A bipartisan group of 16 senators, led by Sens. Amy Klobuchar, D-Minn., and Chuck Grassley, R-Iowa, on April 11 sent a letter to U.S. EPA Administrator Andrew Regan urging the agency to strengthen the Renewable Fuel Standard.

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A group of 37 representatives led by Reps. Ashley Hinson, R-Iowa, and Angie Craig, D-Minn., sent a letter to U.S. EPA Administrator Andrew Regan urging the agency to increase its proposed 2023, 2024 and 2025 RFS RVOs for biomass-based diesel.

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A bipartisan group of 16 senators, led by Sens. Amy Klobuchar, D-Minn., and Chuck Grassley, R-Iowa, on April 11 sent a letter to U.S. EPA Administrator Andrew Regan urging the agency to strengthen the Renewable Fuel Standard.

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Sen. Chuck Grassley, R-Iowa, on April 12 sent a letter to President Joe Biden urging his administration to issue an emergency waiver to allow E15 sales to continue through the summer 2023 driving season.

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Michigan lawmakers on April 12 introduced the Clean Energy Future Plan, a bill package that aims to implement a wide range of clean energy provisions, including a clean fuel standard (CFS) and a clean energy standard.

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Michigan lawmakers on April 12 introduced the Clean Energy Future Plan, a bill package that aims to implement a wide range of clean energy provisions, including a clean fuel standard (CFS) and a clean energy standard.

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Industry experts and ethanol producers explain what caused markedly high production margins in 2022—strong markets, exciting policy and good prices—while analyzing the first couple months of 2023 and predicting what's to come. Ethanol producers are coming off an undeniably strong year. 2022 was not devoid of challenges, but it was replete with landmark policy and marketplace dynamics that, on balance, allowed the vast majority of U.S. ethanol producers to do quite well financially. Mirroring that financial success this year would be like a pro baseball pitcher throwing back-to-back perfect games—it doesn’t happen—and, sure enough, the last quarter of 2022 and the first quarter of 2023 already reflect that. But this year’s margins may not disappoint, with at least some of last year’s margin-making factors still in play. 

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The EU does not have to choose between its climate, energy and food security goals when it has a pragmatic, proven, homegrown solution that is already delivering results and could do much more with the right approach.

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The U.S. EPA on April 12 released two proposed rules that aim to implement new emissions standards for light-, medium-, and heavy-duty vehicles starting with MY 2027. The proposed standards overlook the low-carbon benefits of ethanol.

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