Chairperson von Gillern,
Thanks for the chance to offer testimony for LB 8. Development Power is the world’s largest affiliation of biofuel producers, representing 97 U.S. crops that produce greater than 9.5 billion gallons of renewable gas yearly; 123 companies related to the manufacturing course of; and tens of hundreds of biofuel supporters nationwide. Collectively, we’re working to carry customers higher and extra reasonably priced decisions on the gas pump, enhance air high quality, and shield the surroundings for future generations. We stay dedicated to serving to diversify our nation’s vitality portfolio, develop extra vitality jobs, decarbonize our nation’s vitality combine, maintain household farms, and drive down the prices of transportation fuels for customers.
Development Power strongly advocates for insurance policies supporting sustainable aviation gas (SAF) improvement, which presents an historic alternative to Nebraska’s farmers and bioethanol producers, together with the eight Nebraska biorefineries which are members of Development Power, which collectively have a manufacturing capability of 995 million gallons of bioethanol.
In 2021, the US produced roughly 5 million gallons of SAF however incentives like Sustainable Aviation Gas Tax Credit score Act might help the ethanol trade occupy as much as half of the home aviation market. Development Power members have dedicated over 1.1 billion gallons of ethanol capability to SAF, greater than 650 million gallons of SAF. To realize these objectives, getting the insurance policies that may spur this funding proper is crucial.
Development Power helps LB 8, which modifies the $1.50 tax credit score for sustainable aviation gas (SAF) offered or utilized in Nebraska. The modifications made by LB 8 permit Nebraska to develop into a pacesetter in SAF manufacturing and gross sales. Particularly, modifying the credit score to take away the $500,000 annual restrict the state can approve for the tax credit score every fiscal yr is essential to the expansion of Nebraska’s SAF manufacturing. Moreover, amending the implementation date for the tax credit score ensures the state’s bioethanol producers can absolutely make the most of the credit score.
LB 8 represents a possibility for Nebraska farmers and biofuel producers to profit from this nonetheless nascent market poised to skyrocket within the coming a long time. A examine carried out by Determination Innovation Options concluded that to realize 100% SAF utilization by 2050, 63 new bioethanol crops of 200 million gallons manufacturing capability every will must be constructed nationwide. That very same examine advised Nebraska may have as many as 6 alcohol-to-jet (the method through which bioethanol is transformed to sustainable aviation gas) SAF manufacturing services primarily based on the state’s corn provide. Nebraska’s standing as a number one state for corn and bioethanol manufacturing has the potential to be enhanced with the passage of LB 8.
At present, biofuels assist greater than half one million jobs throughout the agricultural bioeconomy. If bioethanol producers take full benefit of SAF alternatives, that quantity has the potential to double. LB 8 incentivizes the Cornhusker State to embrace SAF manufacturing and capitalize on the financial and employment advantages of the rising SAF trade.
We respect the chance to specific our assist for LB 8, thank Senator Dungan for introducing the laws, and respectfully request the committee’s assist for the invoice. Moreover, we can be found to help the committee with any technical questions.
