Biofuel producers and agriculture advocates are urging the Biden Administration to resolve hurdles blocking extension of sustainable aviation fuel tax credits.
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A coalition of biofuel producers and agriculture advocates have sent a letter to U.S. Treasury Secretary Janet Yellen urging the administration to swiftly resolve any hurdles in the ramp-up of sustainable aviation fuel (SAF). Specifically, the group is pushing for the adoption of the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model, which many believe will weigh corn ethanol-derived SAF more favorably and make it eligible for subsidies under the Inflation Reduction Act of 2022.
In consultation with the Environmental Protection Agency, Department of Transportation, and Department of Agriculture, the Department of Energy had promised to release an updated version of GREETs by March 1, which would incorporate new data and science, including new modeling of feedstocks and processes used in SAF production.
“We are disappointed that the administration did not fulfill its commitment to release a modified GREET model by March 1, but we appreciate the importance of getting the modeling right,” said the group of 26 organizations including the Renewable Fuels Association, Clean Fuels Alliance America, National Corn Growers Association, National Farmers Union, and Growth Energy. “At the same time, we caution against contradictory changes to GREET that would stack unwarranted penalties on agricultural feedstocks, cut rural America out of a promising green energy market, and undermine any realistic path to achieving U.S. SAF goals.”
SAF’s benefits largely derive not from its actual use, but from its lifecycle carbon emissions savings over conventional petroleum-based jet fuel. Environmental groups point out that not all SAF is created equally and caution about extending the tax credits to what they describe as low-integrity fuels that may not offer the same levels of emissions reductions or other environmental protections.
Fuel and Farm Groups Urge Resolution on SAF Tax Credits
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A coalition of biofuel producers and agriculture advocates have sent a letter to U.S. Treasury Secretary Janet Yellen urging the administration to swiftly resolve any hurdles in the ramp-up of sustainable aviation fuel (SAF). Specifically, the group is pushing for the adoption of the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model, which many believe will weigh corn ethanol-derived SAF more favorably and make it eligible for subsidies under the Inflation Reduction Act of 2022.
In consultation with the Environmental Protection Agency, Department of Transportation, and Department of Agriculture, the Department of Energy had promised to release an updated version of GREETs by March 1, which would incorporate new data and science, including new modeling of feedstocks and processes used in SAF production.
“We are disappointed that the administration did not fulfill its commitment to release a modified GREET model by March 1, but we appreciate the importance of getting the modeling right,” said the group of 26 organizations including the Renewable Fuels Association, Clean Fuels Alliance America, National Corn Growers Association, National Farmers Union, and Growth Energy. “At the same time, we caution against contradictory changes to GREET that would stack unwarranted penalties on agricultural feedstocks, cut rural America out of a promising green energy market, and undermine any realistic path to achieving U.S. SAF goals.”