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Advocates urge action on sustainable aviation fuel tax credits

Treasury Department called on to swiftly adopt the GREET model for calculating SAF tax credits under the Inflation Reduction Act.

Airplane Over Corn

A coalition of biofuel and farm advocates from 13 states, including prominent organizations such as Clean Fuels Alliance America, Growth Energy, and the National Corn Growers Association, have called on President Biden’s Treasury Department to expedite the resolution of issues hindering the expansion of U.S. Sustainable Aviation Fuel (SAF) production. They specifically requested the swift adoption of the U.S. Department of Energy’s GREET model for calculating SAF tax credits under the Inflation Reduction Act. This process was initially scheduled to be completed by March 1.

The 26 organizations expressed disappointment over the missed March 1 deadline for the release of a modified GREET model, while acknowledging the importance of accurate modeling. However, they warned against changes that would unfairly penalize agricultural feedstocks, potentially excluding rural America from the burgeoning green energy market and jeopardizing the attainment of U.S. SAF goals.

The advocates highlighted the existence of well-established methodologies for certifying climate-smart agriculture (CSA) practices. They argued these should be favored over speculative penalties for indirect land use change (ILUC), which they claim are unsupported and harmful to U.S. agriculture.

The letter stressed the significance of recognizing advancements in regenerative and CSA practices, as well as the full range of biorefining innovations. Failure to do so, they argued, would result in missed opportunities to reduce carbon emissions and stimulate growth in these vital sectors.

The coalition called for a consistent approach to ILUC and CSA, emphasizing the need for a credible, durable, and predictable framework. Such a framework is essential for farmers and SAF producers to make the necessary commitments to realize the goals of the Inflation Reduction Act and the SAF Grand Challenge.

The complete letter and list of signatories are available for public viewing.

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