Ethanol Blog: Bill Introduced to Provide More Reports on Sustainable Aviation Fuel Production

by Chris Clayton (DTN Progressive Farmer) A bipartisan group of lawmakers is introducing a bill that would require the U.S. Energy Information Administration (EIA) to provide more weekly and monthly reports on Sustainable Aviation Fuel (SAF) production.

Rep. Mike Flood, R-Neb., and Rep. Troy Carter, D-La., introduced the bill Sustainable Aviation Fuel Information Act with four other co-sponsors. The bill would require the more SAF weekly and monthly reports consistent with other reports published by the EIA.

"Nebraska is the second largest producer of biofuels in the nation and we're constantly working to grow our bioeconomy," Flood said in a news release. "Sustainable Aviation Fuel is an incredible growth opportunity that can help expand the biofuels industry and our rural economy. This commonsense legislation directs the EIA to start including SAF in data sets they publish, allowing stakeholders and industry to better understand how production is developing. Thank you to my colleagues, especially Congressman Carter, for stepping up and pushing to help include SAF in key reports as the industry takes off."

Carter added, "Aviation currently represents approximately 10% of our nation's transportation-related greenhouse gas emissions. Without coordinated action between government and industry, these emissions will continue to increase as more people and goods fly through our skies. Sustainable aviation fuel is an exciting, new green fuel with a proven record of success. I'm proud to introduce this bipartisan legislation to ensure America is on track to meet the growing demand for cleaner transportation and healthier communities. I'm committed to supporting innovative, eco-friendly aviation solutions like this."

Congressman Flood has been an advocate for SAF, pushing to expand markets and introducing the Sustainable Aviation Fuel Accuracy Act of 2023 along with Congresswoman Nikki Budzinski (D-IL).

Along with Flood and Carter, the bill also was co-sponsored by Reps. Salud Carbajal, D-Calif., Chris Pappas, D-N.H., Don Bacon, R-Neb., Dina Titus, D-Nev., and Hillary Scholten, D-Mich.

Supporters of the Sustainable Aviation Fuel Information Act include the Renewable Fuels Association, National Corn Growers Association, American Soybean Association, the SAF Coalition, Greater New Orleans Inc., American Sugar Cane League, National Corn Growers Association, Growth Energy, Renewable Fuels Nebraska, the Nebraska Soybean Association, the Nebraska Corn Growers Association, and the Louisiana Farm Bureau Federation.

"Sustainable aviation fuel is a big opportunity for American bioethanol producers and our farmer partners," ais Emily Skor, CEO of Growth Energy. "Reporting SAF production and including this data in EIA's regular reports is a simple step that will help the entire industry track its progress and identify investment opportunities. We're grateful to Rep. Flood and Rep. Carter for introducing this bill, and for taking steps to secure America's position as a leader in SAF production." - Emily Skor, CEO of Growth Energy

Harold, Walle, president of the National Corn Growers Association (NCGA), said, "This bill will help provide transparency for corn growers and the biofuels industry. In this emerging space, accountability is needed to ensure that American farmers are being properly credited for providing the feedstocks that will drive this new market." READ MORE

Excerpt from Argus Media: The agency currently tracks SAF and offers periodic updates on the fuel's use, though not on any regular cadence like it does with conventional petroleum-based fuels and more established biofuels like ethanol, biodiesel, and renewable diesel. But the US Department of Energy and EIA would have to shift course and provide more frequent and technical SAF updates "as soon as practicable" if the bill, introduced late last week by representatives Mike Flood (R-Nebraska) and Troy Carter (D-Louisiana), ends up passing.

According to bill text shared with Argus, EIA would have to report on SAF production across the country and in each state, imports, and the "type, origin, and volume of feedstock" used to make SAF. The bill defines SAF as liquid fuel that produces at least 50pc fewer lifecycle greenhouse gas emissions as conventional jet fuel and that is not produced from petroleum or palm oil derivatives, mirroring eligibility requirements set out in the Inflation Reduction Act for a SAF tax credit.

The bill specifically requires that EIA's Petroleum Supply Monthly and Weekly Petroleum Status Report include the new SAF data along with "any other relevant report." Potentially applicable publications include EIA's monthly report estimating biofuel production capacity — which currently lumps SAF together with renewable diesel and lesser-used biofuels — and a monthly outlook that includes production, consumption, and import projections for various commodities.

Various biofuels associations — including corn groups that are banking on rising SAF production to create new demand for ethanol — voiced their support. Geoff Cooper, president of the Renewable Fuels Association, said that "this legislation would ensure SAF producers and users have the information they need to make informed decisions and smart investments."

While relatively little supply is available today, EIA said last month that SAF production capacity could hit nearly 30,000 b/d this year and increase again in 2025 if planned capacity additions are not delayed. Refiners like Phillips 66, Calumet, and Valero have set plans to convert more of their renewable diesel production to SAF over the next year. There are also other production pathways in various stages of development, such as using ethanol as feedstock or converting syngas from agricultural and forest wastes into liquid fuel.

The bill, which has five Democratic and two Republican sponsors, is pending before the House Committee on Energy and Commerce. EIA declined to comment on any policy proposal. READ MORE