Minnesota policymakers unite to deepen state’s support for Sustainable Aviation Fuel (SAF)
Last night, legislators in Minnesota came together across party and geographic lines to enact a suite of measures that deepen the state’s commitment to SAF and extend Minnesota’s nation-leading policy support for building an industrial scale SAF economy.
The package includes:
An extension of the tax incentive for an additional five years — through 2035
Increase in amount available to $36M (over the full time period)
Escalating incentive — up to $2 per gallon — to reward lower CI fuels
Consensus guardrails around qualifying fuels, which were crafted by a broad coalition of industry, agriculture, environmental, labor, and other stakeholders to ensure the incentive benefits domestic feedstock providers and add an additional level of clarity and environmental protections
The Minnesota SAF Hub expresses sincere gratitude for Governor Walz, and chief authors Sen. Ann Rest (DFL – New Hope) and Rep. Greg Davids (R- Preston) and MANY other supporters in the Minnesota House and Minnesota Senate who worked in a bi-partisan manner to deliver this nation-leading result.
These measures provide the long-term certainty producers, feedstock suppliers and investors are looking for and create a set of guardrails that define a globally-leading standard of what “SAF done right” looks like. The 2026 suite of policies represents another milestone achieved in the Minnesota SAF Hub strategy. The additional funding is needed because Minnesota’s SAF economy is about to begin this summer when an industrial-scale blending facility comes online near the MSP International Airport.
These measures would not have passed without the input and advocacy of a unique and powerful coalition. The following organizations spent months contributing analysis and consultation that helped enhance the existing state policy. They also demonstrated leadership by collaborating with unlikely allies and educating thousands across the state about the environmental and economic benefits of SAF. This coalition spanned multiple agriculture, environmental, labor, and industry groups, geographies across the state, and elements in the value chain. Many thanks to this innovative and forward-thinking group:
Clean Energy Economy Minnesota
Fresh Energy
Gevo
Great Plains Institute
Friends of the Mississippi River
Minnesota AgriGrowth Council
Metropolitan Airports Commission
Minnesota Biofuels Association
Minnesota Building Trades
Minnesota Chamber of Commerce
Minnesota Corn Growers
Minnesota Environmental Partnership
Minnesota Farm Bureau
Minnesota Farmers Union
Minnesota Forest Resources Council
Minnesota Forest Industries
Minnesota Pipe Trades Association
Minnesota Timber Producers Association
Minnesota Soybean Growers Association
Minnesota Building Trades
The Nature Conservancy
University of Minnesota's Forever Green Initiative
Twelve
and other companies collaborating via the Minnesota SAF Hub.
The Minnesota SAF Hub stands ready to ensure these policy measures are immediately put to good use, driving investment and jobs in Minnesota, creating a new industrial value chain in the state and producing aviation fuel needed by airlines here and around the world.
About the Hub
The Minnesota SAF Hub is the nation’s first large-scale hub committed to scaling production of sustainable aviation fuel to replace conventional jet fuel.
Led by the GREATER MSP Partnership, the hub is a coalition anchored by Bank of America, Delta Air Lines, Ecolab and Xcel Energy. These anchor partners are joined by other leading institutions, such as the State of Minnesota, the Metropolitan Airports Commission and the University of Minnesota. Together, we are building an industrial-scale value chain for sustainable aviation fuel, anchored in Minnesota.
Our aim is to deliver affordable, low-carbon SAF to the Minneapolis–Saint Paul (MSP) International Airport as quickly as possible and then scale production to hundreds of millions, possibly billions, of gallons each year.