Washington Senate Passes Bill to Establish SAF Tax Credits

Aviation Fuel (Sustainable Aviation Fuel (SAF)), Feedstocks, Methane/Biogas, Opinions, Policy, Sustainability, Washington

March 7, 2023

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by Erin Voegele (Ethanol Producer Magazine) The Washington State Senate on March 1 voted 46 to 2 in favor of a bill that aims to encourage the manufacture and purchase of sustainable aviation fuel (SAF) though tax incentives. The bill also directs Washington State University to convene a work group to further development of alternative jet fuels.

The bill, SB 5447, was introduced Jan. 18. Following its March 1 passage by the Washington Senate, the bill was transferred to the Washington House of Representatives. The House Committee on Environment and Energy is scheduled to hold a hearing to consider the legislation on March 9.

The bill requires the Washington State Department of Ecology, the agency tasked with implementing the state’s Clean Fuels Standard, to allow one or more carbon intensity (CI) pathways for alternative jet fuel. A summary of the legislation indicates that the department would be directed to allow biomethane to be claimed as a feedstock for renewable diesel and alternative jet fuel consistent with that allowable for compressed natural gas, liquefied natural gas, or hydrogen production.

The legislation also directs Washington State University to convene an Alternative Jet Fuels Work Group to further the development of alternative jet fuels as a productive industry in the state.

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The tax incentives would begin after there are one or more facilities operating within the state with a cumulative production capacity of at least 20 MMgy of alternative jet fuel per year. The incentives would be in place for 10 years.

Washington Sen. Andy Billig has sponsored the bill. “Our state is already at the forefront of the aviation industry, and we should also be a leader in the development of cleaner fuels for those same airplanes,” he said in a statement. “This is a market just waiting to be tapped. There are potentially hundreds of family wage jobs and wonderful opportunities for businesses in this emerging industry, and we’re just now scratching the surface.”

Additional information on the bill is available on the Washington State Legislature website. READ MORE

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