Exclusive-Biden poised to deliver win for ethanol makers on SAF credits
By Stephanie Kelly, Jarrett Renshaw and Leah Douglas
NEW YORK (Reuters) — The Biden administration is expected this week to recognize a soon-to-be-updated methodology favored by the ethanol industry in guidance to companies looking to claim tax credits for sustainable aviation fuel (SAF), three people familiar with the matter told Reuters.
For months the administration has been divided over whether to recognize the Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.
As it stands, that model would enable ethanol-based SAF to qualify for tax credits under the Inflation Reduction Act, President Joe Biden's signature climate law.
The news, which was first reported by Reuters, is a win for the ethanol industry and the U.S. Corn Belt, a powerful constituency ahead of the 2024 presidential election.
The group sees SAF as one of the only routes to grow ethanol demand amid rising sales of electric vehicles. Biden, a Democrat, is seeking re-election and will depend on votes from closely contested Midwestern states that are the heaviest corn producers.
The administration, however, is also expected to announce it will update the GREET methodology by March 1, the sources said.
That leaves some uncertainty for corn-based ethanol producers, as the administration is expected to ultimately tighten requirements around SAF feedstocks.
Until the updates are announced, a fierce lobbying push is expected. Ethanol groups have been at odds with environmentalists who want standards that elevate feedstocks like used cooking oil and animal fat.
The Treasury Department declined to comment for this story, while the White House did not respond to a request for comment.
SAF producers seeking
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