A bill introduced in the North Dakota Senate aims to create a low-carbon fuels fund that would help the state’s ethanol producers lower the carbon intensity (CI) of the fuel they produce, increasing local demand for corn and helping producers capitalize on the opportunity of sustainable aviation fuel (SAF).&nbsp;The legislation, SB 2333, was introduced by North Dakota Sen. Terry Wanzek on Jan. 20 and referred to the Senate Finance and Taxation Committee, where it was addressed during a Jan. 29 hearing. &nbsp;During the hearing, Wanzek explained that the proposed low-carbon fuels fund would replace the state’s current ethanol production incentive. The ethanol production incentive is designed to provide aid to ethanol producers during adverse times when ethanol prices are unusually low and/or corn prices are unusually high.&nbsp;According to Wanzek, the state’s ethanol plants have all grandfathered out of the program are no longer eligible to receive funds. Yet, the production incentive has a continuing appropriation of 40% of all sums collected for the registration of farm vehicles, he said. The current balance of the program is approximately $6 million.&nbsp;SB 2333 aims to reallocate that funding to a new low carbon fuels fund that would distribute incentives to ethanol facilities for eligible projects to increase efficiency and decrease the CI of their production processes. Eligible projects under the program would include the construction of new infrastructure or replacement of existing infrastructure for CO2 capture and storage, beneficial use of CO2, energy efficiency enhancements, or ethanol yield improvements.&nbsp;According to Wanzek, distributions to any one ethanol facility would be limited to 50% of the costs of an eligible project, not to exceed $3 million per biennium. The bill also sets a $10 million cap on funds dispensed to a particular facility over a 10-year period, beginning with the date of the first distribution.Under the bill, the fund would continue to be allocated 40% of all sums collected for the registration of farm vehicles, with a fund cap set at $30 million.The representatives of the North Dakota Department of Agriculture, North Dakota Ethanol Producers Association, Guardian Energy Group, North Dakota Corn Growers Association, and North Dakota Farmers Union offered testimony in support of the bill. The committee did not take any action on the legislation.&nbsp;Additional information is available on the North Dakota Legislature <a href="https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo2333.html">website</a>.

2025-01-30 - North Dakota legislation aims to help ethanol producers lower their CI scores  (2 publications)

large_Wanzek.jpg

medium_Wanzek.jpg

small_Wanzek.jpg

thumbnail_Wanzek.jpg

Wanzek.jpg

A bill introduced in the North Dakota Senate aims to create a low-carbon fuels fund that would help the state’s ethanol producers lower the CI of the fuel they produce, increasing local demand for corn and helping producers access SAF markets. 

North Dakota legislation aims to help ethanol producers lower their CI scores

Related Stories

70+ industry leaders call for five key policy interventions to support scale-up of e-SAF

Canada offers funding for clean fuels production, transport and storage projects

Bill aims to extend, expand existing Minnesota SAF tax credit

UK launches public consultation on SAF revenue support scheme

US objects to SAF recommendation at ICAO meeting

Upcoming Events

2025 International Fuel Ethanol Workshop & Expo

Carbon Capture & Storage Summit

North Dakota legislation aims to help ethanol producers lower their CI scores .css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}