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Proposed California budget includes new SAF tax credit

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By Erin Krueger

January 13, 2026

Sustainable Aviation Fuels Policy 

California Gov. Gavin Newsom on Jan. 9 released a proposed 2026-27 state budget. Details published by the California Senate Committee on Budget and Fiscal Review indicate the proposed budget includes provisions for a new SAF tax credit.

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Iowa’s ethanol plants produced 4.6 billion gallons of ethanol in 2025, matching its output level from the past two years, according to the Iowa Renewable Fuels Association. Total U.S. ethanol production, however, continued to grow.

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Ethanol Unleashed

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By Geoff Cooper

January 13, 2026

As 2026 begins, several promising trends are emerging that give the RFA strong confidence in ethanol’s future.

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The USDA maintained its forecast for 2025-’26 corn use in ethanol production in its latest World Agricultural Supply and Demand Estimates report, released Jan. 12. The agency increased its forecast for season-average corn prices.

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The USDA on Jan. 12 confirmed U.S. farmers produced a record 17 billion bushels of corn in 2025, up 14% when compared to the 2024 estimate. Grain sorghum production was also up significantly when compared to the previous year.

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The USDA on Jan. 12 confirmed that farmers harvested a record-large corn crop in 2025, estimated at more than 17 billion bushels. At the same time, corn stockpiles are expected to climb to their highest level in eight years.

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The U.S. EPA on Jan. 7 delivered a draft final rule to the White House Office of Management and Budget to repeal the agency’s 2009 Endangerment Finding and tailpipe greenhouse gas regulations for motor vehicles and engines.

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Washington State leaders, aviation industry partners, research institutions, Tribal representatives and sustainability advocates on Jan. 8 launched the Cascadia Sustainable Aviation Accelerator, an initiative that aims to accelerate SAF deployment.

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NCGA: Key Forces Shaping Corn’s Future

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By National Corn Growers Assocaition

January 12, 2026

The NCGA on Jan. 9 released its economic outlook for 2026 outlining six key forces expected to drive corn prices and farm margins in the year ahead. The forecast underscores the need for new and expanded markets for corn growers.

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U.S. Secretary of Agriculture Brooke L. Rollins has announced the appointment of Justin Benavidez as USDA’s Chief Economist. Benavidez’s appointment follows the retirement of Seth Meyer, who served as USDA’s Chief Economist since 2021.

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Bioethanol was showcased for use in on-road, aviation and maritime applications during COP30 in Brazil.

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LanzaTech Global Inc. has announced successful operational results at the municipal solid waste (MSW) to ethanol pilot plant in Kuji City, Iwate, Japan owned and operated by longstanding partner, SEKISUI CHEMICAL CO. LTD.

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Tallgrass Trailblazers

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By Luke Geiver

January 09, 2026

Eleven Nebraska ethanol producers are in various stages of connection to a CO2 capture pipeline that has reshaped the American ethanol industry.

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Advanced biofuels pioneer Haffner Energy and power-to-energy player IGNIS P2X kicked off their bio/e-SAF collaborative project AeroVerde. The companies are currently identifying the project’s first site’s precise location in Spain.

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The U.S. exported 185.03 million gallons of ethanol and 1.07 million metric tons of distillers grains in October, according to date released by the USDA on Jan. 8. Exports of both products were up when compared to the previous month.

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The U.S. House of Representatives on Jan. 8 voted 397 to 28 in favor of an appropriations package that includes language on biomass energy and sustainability. Reports accompanying the legislation include guidance on SREs and SAF.

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Total operable U.S. biofuels capacity was at 25.297 billion gallons per year in October, unchanged from the previous month and up nearly 2% when compared to October 2024, according to data released by the U.S. EIA on Dec. 31.

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Biomass Magazine has released the agenda for the 19th Annual International Biomass Conference & Expo, scheduled for March 31-April 2, 2026, at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.

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The U.S. EIA on Dec. 31 released data showing U.S. biofuel producers consumed 30.097 billion pounds of feedstock in October, up nearly 8% when compared to the previous month and up nearly 2% when compared to October 2024.

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Testing strips and third-party labs enable ethanol producers to identify and measure mycotoxins with speed and accuracy.

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U.S. ethanol production fell by 2% the week ending Jan. 2, according to data released by the U.S. Energy Information Administration on Jan. 7. Stocks of fuel ethanol were up 3% while exports fell by nearly 24%.

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The U.S. EPA in December 2025 released a draft permit for a Class VI CO2 injection well for a project under development by PureField Carbon Capture LLC that would capture and sequester CO2 produced at PureField Ingredient’s ethanol plant.

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POET on Jan. 7 announced it will expand POET Bioprocessing – Shelbyville, doubling the facility’s bioethanol production capacity from 98 MMgy to 193 MMgy. Construction is expected to begin in March and be completed in Q4 2027.

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Ag, biofuel groups continue call for year-round sales of lower-cost E15

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By Renewable Fuels Association and Growth Energy

January 08, 2026

In a letter sent on Jan. 7 to congressional leadership, a coalition of more than 70 biofuel and agricultural organizations called for the immediate passage of legislation to allow year-round nationwide sales of E15.

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A New Level of Clean

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By Luke Geiver

January 07, 2026

Bin and silo cleaning services go beyond traditional methods, forging new paths in safety and technology.

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UNICA, the Brazilian sugarcane industry association, has released data showing sugarcane processing was down during the second half of November. Ethanol sales for the full month were also down when compared to November 2024.

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The U.K. Department for Transport late 2025 signaled it may be softening its stance on crop-based SAF. The agency is gathering stakeholder input that could provide a pathway to open the country’s SAF Mandate program to crop-based biofuels.

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The USDA on Dec. 30 announced new research and development priorities for 2026. One of the five new priorities focuses on market expansion and creating new uses for U.S. agricultural products, including for use in biofuel and bioenergy.

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Ethanol accounted for 11.06% of the nation’s gasoline in October, marking the first time in history that the monthly ethanol “blend rate” has topped 11%, according to newly released data from the U.S. Energy Information Administration.

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Prompted by low-CI tax credits and high natural gas prices, ethanol producers are exploring mechanical vapor recompression.

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