The Minnesota Bio-Fuels Association’s executive director, Brian Werner, was at an Infrastructure Roundtable with Rep. Ilhan Omar in Minneapolis yesterday.
During the roundtable discussions, Werner highlighted the commitment by Minnesota’s ethanol industry to produce net-zero biofuel by 2050 and federal investment in low-carbon biofuels under the Inflation Reduction Act, which was signed into law in August 2022.
“The law includes performance-based tax credits to produce clean fuels, funding for higher biofuel blend infrastructure, and tax credits for carbon capture and utilization. One concern is that several IRA tax credits for biofuels are only available for calendar years 2025, 2026, and 2027, and – in many cases – we have only received initial guidance from the Treasury Department on necessary details like who qualifies, what lifecycle methodologies can be used to calculate GHG reductions, and how to meet prevailing wage and apprenticeship requirements. The sooner the Biden Administration can finalize these details, the more certainty the industry will have to make the investments necessary to capitalize on the IRA’s benefits,” he said.
Werner also urged Omar to support the Farm to Fly Act to clarify eligibility for Sustainable Aviation Fuel (SAF) in the Farm Bill energy title, provide for greater collaboration for SAF at USDA, and ensure the best available science and modelling tools like Argonne’s GREET model are used to calculate the carbon benefits of homegrown renewable fuels.
Below are his full remarks at the roundtable:
On behalf of the Minnesota Bio-Fuels Association and its nine renewable fuel production facilities across the state, I want to thank Congresswoman Omar and State Representative Koegel for the invitation and for including Minnesota’s renewable fuel industry in this discussion. I appreciate the opportunity to share our industry’s perspective and learn from the other dedicated public servants and organizations here today that are working to decarbonize transportation and make our state’s transportation infrastructure more sustainable.
Biofuels in Minnesota already cut greenhouse gas emissions by approximately 50 percent on average, compared to gasoline. With the increased adoption of low-carbon farming practices, incorporation of renewable electricity and energy efficiency at production facilities, and the use of carbon capture and utilization technologies, our state’s renewable fuels industry is on the path to achieving its commitment of producing net-zero biofuel by 2050.
The tools needed to achieve net-zero biofuel would be much harder to grasp without your support, Rep. Omar, and the support of the Biden Administration in passing and implementing the Inflation Reduction Act or IRA. When the IRA was signed in August 2022, it represented the most significant federal investment in low-carbon biofuels since the Renewable Fuel Standard in 2007. The law includes performance-based tax credits to produce clean fuels, funding for higher biofuel blend infrastructure, and tax credits for carbon capture and utilization.
One concern is that several IRA tax credits for biofuels are only available for calendar years 2025, 2026, and 2027, and – in many cases – we have only received initial guidance from the Treasury Department on necessary details like who qualifies, what lifecycle methodologies can be used to calculate GHG reductions, and how to meet prevailing wage and apprenticeship requirements. The sooner the Biden Administration can finalize these details, the more certainty the industry will have to make the investments necessary to capitalize on the IRA’s benefits.
Lastly, we know that the transportation sector is increasingly electrifying so the real opportunity to expand the renewable fuels industry in Minnesota lies in Sustainable Aviation Fuel or SAF. We would urge you to cosponsor the Farm to Fly Act to clarify eligibility for SAF in the Farm Bill energy title, provide for greater collaboration for SAF at USDA, and ensure the best available science and modelling tools like Argonne GREET are used to calculate the carbon benefits of homegrown renewable fuels.
Representative Omar, thank you again for holding this roundtable and inviting biofuel producers. We are thankful for your leadership on the IRA and look forward to working with you to advocate for renewable fuels as a climate solution.