Biofuel Producers to Urge Congress to Review Lower-Carbon Aviation Fuel Tax Credits

by Stephanie Kelly and Jarrett Renshaw (Reuters) Biofuel producers will urge U.S. Congressional leaders on Tuesday to change the methodology used in the Build Back Better Act to account for life-cycle emissions in the production of lower-carbon aviation fuel.

Makers of sustainable aviation fuel (SAF) are angling for tax credits to help boost production as the Biden administration aims to cut carbon emissions.

The existing text of the bill relies on parameters developed by the International Civil Aviation Organization. But signatories of a letter from biofuels makers reviewed by Reuters want the legislation to use an accounting method known as the U.S. Department of Energy's GREET model, which they argue is updated to reflect innovations in biofuel production.

In the letter, dated Tuesday, biofuel producers argue the accounting method in the current proposal for the Build Back Better legislation, tabled last year, would disqualify a share of SAF from the tax credits.

Signatories to the letter include Darling Ingredients Inc (DAR.N), Gevo Inc and Marquis Sustainable Aviation Fuel. READ MORE

Excerpt from Politico's Morning Energy: UNITED CEO PRESSES FOR SAF CREDIT: United Airlines CEO Scott Kirby called on congressional leaders Tuesday to “take prompt action” to combat climate change by passing the proposed tax credit for sustainable aviation fuel. The House-passed budget reconciliation package included a refundable SAF tax credit that would begin at $1.25 per gallon for blenders, which Kirby called “the most important action we can take in the near term” with respect to aviation. “Scaling SAF quickly is critical to reducing aviation’s climate impact. However, the high costs of SAFs compared with fossil fuel is a major barrier to their production and use,” he wrote. READ MORE