Ethanol Blog: Does the Trump Administration Fully Understand Rural Economic Potential of SAF?

May 06, 2025

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by Todd Neeley (DTN Progressive Farmer) As time passes beyond the first 100 days of the Trump administration, dreams of a rural future with sustainable aviation fuel seem to be waning -- this despite the rural vote carrying President Donald Trump to victory again.

Though the new administration has said very little if anything about where it stands on SAF, on the surface it makes sense for Trump to get fully behind such an industry if for nothing else to help secure future economic prosperity for farmers.

Trump has on more than one occasion said, "we love our farmers," yet a potential goldmine for rural America sits stuck in neutral.

To this point the administration seems disinterested.

SAF will grow into a commercially viable venture for farmers and communities that are deeply invested in ethanol production, if it has the full support of the Trump administration.

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Like it or not, 45Z is viewed by the administration as being part of the so-called green new deal.

That's at the root of why SAF has gone largely unrecognized by the new administration despite the industry's potential for rural Americans.

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STILL A 45Z EXPANSION COULD HAPPEN

Even with the Trump rhetoric, it doesn't seem out of the realm of possibility the administration could and probably should at some point change its view.

The rural vision of SAF's potential is shared by millions of farmers who voted for the president.

Perhaps at some point the Trump administration will get behind a long-term extension of 45Z that is set to expire on Dec. 31, 2027, even if it came from the previous administration.

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Even if the current administration put its full weight of support behind SAF, it seems the future faces significant headwinds.

The easiest path for ethanol plants to be a big part of SAF is to reduce carbon scores through carbon capture and storage, so as to make the fuel more attractive to airlines that are pushing toward net-zero carbon emissions.

This is where carbon pipelines can play a significant role and it is at this intersection where SAF is seeing and will continue to see the most resistance.

SUMMIT STRUGGLES

Enter Summit Carbon Solutions -- a company with plans to connect 57 Midwest ethanol plants to a carbon pipeline to open the door to SAF production across farm country.

Prior to the end of 2024, Summit seemed to be making progress in obtaining permits and in clearing other regulatory hurdles in Iowa, North Dakota and Minnesota.

Since then, state lawmakers in Iowa and South Dakota have started to chip away at the chances that the proposed 2,500-mile pipeline will ever being built, read about that here: https://www.mprnews.org/….

Serious opposition to the use of eminent domain could derail the Summit project and right now it's taking center stage in Iowa and South Dakota.

South Dakota Republican Gov. Larry Rhoden signed a bill into law in March that essentially bans eminent domain to acquire private property to build carbon pipelines.

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Despite the negative publicity aimed at Summit, the vast majority of land acquired for the project does not come from eminent domain, according to company officials, https://apnews.com/….

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In January, Trump placed a 90-day hold on tax credits including 45Z. Although the Internal Revenue Service has put out guidance on 45Z, Trump's recently proposed budget appears to contain no 45Z extension.

It doesn't appear 45Z is even on Trump's radar.

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So how bad to you want SAF, rural America?

If a long-term 45Z extension and the SAF industry are going to happen, farmers will have to openly push for both.

Trump may ultimately say no to the refined fuels industry on this one, unless someone makes a good economic case. READ MORE

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White House What You Can Do Transportation Fuels Policy--State Transportation Fuels Policy Transportation Fuels Policy tax policy tax credits Sustainability South Dakota Regulations-State Regulations-Federal Minnesota Midwest market forces Legislation-Federal land use policy Jetfuel (Sustainable Aviation Fuel (SAF)) Iowa Green New Deal farmers ethanol/bioethanol environmental policy economic policy co-products Carbon Intensity (CI)/Carbon Footprint Carbon Dioxide (CO2) carbon capture and storage (CCS) BioRefineries/Renewable Fuel Production BioChemicals/Renewable Chemicals Aviation Fuel/Sustainable Aviation Fuel (SAF) alcohol-to-jet (ATJ)/ethanol-to-jet (ETJ) Agricultural Policy 45Z Clean Fuel Production Tax Credit

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