- BizAv Coalition urges the Biden administration to adopt a flexible, performance-based framework for measuring and verifying GHG emissions from Sustainable Aviation Fuel production.
- The proposed GHG rules under the USDA’s plan, which will influence tax incentives like the Clean Fuel Production Credit, are crucial for achieving the SAF Grand Challenge’s goal.
The Business Aviation (BizAv) Coalition urges the Biden administration to adopt the same approach used in existing biofuel programs for new sustainable aviation fuel (SAF) regulations. The alliance emphasises the need for flexible rules to measure and verify greenhouse gas (GHG) emissions from various SAF feedstocks.
These new regulations will determine the tax incentives available to SAF producers under the Inflation Reduction Act (IRA). The US Department of Agriculture (USDA) seeks public comments on its plan to promote climate-friendly farming practices for SAF feedstock development. This initiative is part of the Biden administration’s SAF Grand Challenge, which aims to produce three billion gallons of SAF by 2030.
In a recent letter to the USDA’s Office of Energy and Environmental Policy, the Business Aviation Coalition for Sustainable Aviation Fuel recommended that the agency follow the model used by the Renewable Fuel Standard and other existing biofuel audit programs. The coalition stressed the importance of a flexible, performance-based framework that accurately quantifies, reports, and verifies GHG emissions from SAF production.
“The BizAv SAF Coalition encourages the Department to enable as much adaptability and flexibility in its framework as is practicable,” the coalition stated. They also urged the USDA to adopt a performance-based approach, focusing on outcomes rather than strict, exclusionary lists of acceptable feedstocks.
The coalition warned that the US might fail to meet its SAF Grand Challenge goals without the right approach to GHG regulations. They emphasised that achieving these targets will likely depend on United States agriculture’s existing scale and capabilities, mainly through access to sustainable crop-based feedstocks.
A flexible, performance-based framework would allow SAF producers to innovate and utilise a variety of feedstocks. This adaptability is crucial for scaling production to meet the ambitious three-billion-gallon target. Clear and consistent regulations are necessary to attract investment and drive innovation in the SAF sector.
The proposed GHG rules will also impact how SAF producers can benefit from the Clean Fuel Production Credit under the IRA. These credits are essential for incentivising the production of low-carbon fuels, making SAF more competitive with traditional jet fuel. The USDA’s plan aims to support the development of climate-friendly and economically viable feedstocks, providing a stable supply of raw materials for SAF producers.
The SAF Grand Challenge is critical to the Biden administration’s strategy to reduce aviation’s carbon footprint. Producing three billion gallons of SAF by 2030 would significantly lower greenhouse gas emissions from the aviation sector, aligning with broader climate goals.
Industry stakeholders believe aligning SAF rules with existing biofuel standards will create a predictable environment for producers and investors. This alignment can help attract the necessary investment to scale up SAF production and drive technological advancements.
The Business Aviation Coalition for Sustainable Aviation Fuel is a leading voice in promoting sustainable aviation practices. Their advocacy for a performance-based approach highlights the need for effective and adaptable regulations to the evolving biofuel landscape.
As the USDA continues to develop its rules, the coalition and other industry groups will remain active in providing feedback. Their goal is to ensure that the final regulations support the growth of the SAF industry while meeting environmental objectives.
The outcome of these regulatory efforts will significantly shape the future of sustainable aviation fuel in the United States. Achieving the SAF Grand Challenge will require collaboration between government agencies, industry players, and the agricultural sector to build a robust and sustainable SAF supply chain.
Once finalised, the greenhouse gas rules will set the standards for SAF producers to access the Clean Fuel Production Credit. This credit is a crucial financial incentive that can help lower the cost of producing SAF, making it a more viable option for airlines and other aviation stakeholders.
The Business Aviation Coalition’s call for a flexible and outcome-focused regulatory framework reflects the broader industry consensus on the need for supportive policies. As the US strives to lead in low-carbon fuel production, aligning SAF rules with established biofuel standards will be critical to the success of the SAF Grand Challenge.