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Iowa legislature passes bill to create SAF tax credit

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By Erin Voegele

a day ago

Policy 

Iowa state lawmakers in May approved tax legislation that, in part, aims to create a tax credit to incentivize sustainable aviation fuel (SAF) production within the state. The bill is now under consideration by Iowa Gov. Kim Reynolds.

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The Congressional Biofuels Caucus on May 22 launched for the 119th Congress. Caucus members recognize that biofuels are key to American energy independence and advocate for policies that support biofuel producers.

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Infinium announced on May 19 that construction is underway on its second U.S.-based eFuels production site in Texas, known as Project Roadrunner. Once operational, the facility will produce 7.6 MMgy of eSAF and other eFuel products.

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Virgin Australia and Boeing on May 22 released a report by Pollination on the challenges and opportunities of an International Book and Claim system for sustainable aviation fuel (SAF) accounting.

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The U.S. House of Representatives early on May 22 narrowly passed a reconciliation bill that includes provisions updating and extending the 45Z clean fuel production tax credit. The bill, H.R. 1, will now be considered by the U.S. Senate.

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U.S. EPA Administrator Lee Zeldin on May 21 stressed the agency is working “as fast as humanly possible” to finalize a rulemaking setting 2026 RFS RVOs during a hearing held by the U.S. Senate Committee on Environment and Public Works.

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Clean Fuels Alliance America on May 22 delivered a letter to U.S. EPA Administrator Lee Zeldin, urging him to set the 2026 RFS biomass-based diesel volume at no less than 5.25 billion gallons and allow continued growth in the 2027 volumes.

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Luxury North Dakota FBO, Overland Aviation—together with leading independent fuel supplier, Avfuel Corp.— on May 19 announced it accepted a 8,000-gallon delivery of sustainable aviation fuel (SAF) on May 12.

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A group of 28 House members on May 16 sent a letter to President Donald Trump urging his administration to adopt timely, robust Renewable Fuel Standard renewable volume obligations (RVOs) for 2026 and beyond.

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Neste and FedEx, the world’s largest express cargo airline, have agreed on the supply of 8,800 metric tons (more than 3 million gallons) of blended Neste MY Sustainable Aviation Fuel to FedEx at Los Angeles International Airport (LAX).

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Washington Gov. Bob Ferguson on May 17 signed a bill that sets more ambitious targets for the state’s Clean Fuel Standard. The new law requires a 45% reduction in greenhouse gas emissions by 2038 when compared to a 2017 baseline.

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A bill to formally adopt a revenue certainty mechanism to support the production of SAF was introduced in the U.K. Parliament on May 14. The proposed scheme is in the form of a guaranteed strike price.

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United on May 6 announced an investment in Twelve, an innovative low carbon fuels company that uses a process similar to photosynthesis to transform CO2 and water into sustainable aviation fuel (SAF) using renewable energy.

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Delta Air Lines on May 7 announced its strong support for new bipartisan, bicameral legislation that will accelerate the growth of sustainable aviation fuel (SAF) in Michigan. The bill aims to create a SAF tax credit of up to $2 per gallon.

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The U.S. EPA on May 14 delivered two RFS rulemakings to the White House OMB, beginning the interagency review process. One rule focuses on RFS RVOs and the other focuses on a partial waiver of the 2024 cellulosic RVO.

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U.S. EPA Administrator Lee Zeldin on May 15 told members of the House Appropriations Committee that the agency is working as quickly as it can to take action on the backlog of RFS small refinery exemption (SRE) petitions.

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The U.S. EPA on May 15 released data showing nearly 1.79 billion RINs were generated under the RFS in April, down from 2.09 million generated during the same month of last year. Total RIN generation for the first four months of 2025 was 7.12 billion.

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The House Ways and Means Committee on May 14 advanced its portion of President Trump’s “big, beautiful” tax bill. The draft legislation amends and extends the 45Z clean fuel production credit but repeals several other clean energy tax credits..

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U.S. EPA Administrator Lee Zeldin on May 14 confirmed the agency will “over the next few months” be completing a rulemaking process to set new Renewable Fuel Standard renewable volume obligations (RVOs).

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Gevo Inc. CEO Patrick Gruber discussed plans for a proposed 30 MMgy alcohol-to-jet (ATJ) project in North Dakota during the company’s first quarter earnings call, held May 13. The company has not disclosed a timeline for development of the project.

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Calumet Inc. on May 9 announced sustainable aviation fuel (SAF) capacity at its Montana Renewables biorefinery is expected to reach 120 MMgy to 150 MMgy sooner than previously reported for a fraction of the originally expected cost.

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Aemetis Inc. released Q1 results on May 8, reporting increased biogas production, progress with efficiency improvements at the Keyes ethanol plant, and resumed biodiesel deliveries. Financing activities are also underway for a proposed SAF project.

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Wheels Up Experience Inc. on May 6 announced the launch of its new SAF program, under which Wheels Up will partner with Delta Air Lines to purchase SAF, allowing private fliers to participate regardless of their flight operator or departure airport.

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Draft language for President Trump’s “big, beautiful bill” released by federal lawmakers on May 12 includes language that would update and extend the 45Z clean fuel production tax credit and rescind biofuel funding allocated to the EPA by the IRA.

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The USDA reduced its estimate for 2024-’25 soybean use in biofuel production in its latest WASDE report, released May 12. The agency expects soybean oil use in biofuel to increase during the 2025-’26 marketing year.

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LanzaJet and BioD have launched a feasibility study to develop the first sustainable aviation fuel (SAF) production plant in Colombia. The proposed facility would utilize LanzaJet’s alcohol-to-jet (ATJ) technology.

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Masdar, the UAE’s clean energy leader, and OMV, Austria’s integrated chemicals, fuels and energy company, have signed an agreement to partner in the production of green hydrogen, eSAF, and other sustainable products.

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Scientists at Washington State University have found a new way to produce sugar from corn stalks and other crop waste, potentially opening a new pathway to sustainable biofuels. The experimental process used ammonium sulfite-based alkali salts.

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Reps. Zach Nunn, R-Iowa, and Nikki Budzinski, D-Ill., on May 7 introduced a bill that aims to update USDA’s Section 9003 program to expand access to grants, streamline loan guarantees and provide $100 million in mandatory funding over five years.

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On May 6, the Sustainable Aviation Buyers Alliance released a request for proposal (RFP) to increase the supply of next-generation sustainable aviation fuel (SAF), including power-to-liquids and those using advanced biobased feedstocks.

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