June 11, 2021 — Companies across the aviation sector are applauding the introduction of the Sustainable Skies Act in the U.S. House of Representatives. Representatives Brad Schneider, Dan Kildee, and Julia Brownley introduced this act with the intent of establishing a $1.50 per gallon “blender’s tax credit” for sustainable aviation fuel (SAF) that is 50% greener than conventional fuels. The SAF would also receive an additional $.01 per gallon credit for each percentage point in reduction above the 50% baseline. These credits would be in effect until 2031, and aim to make the price of SAF more competitive with the price of fossil fuels. SAF is the industry’s best opportunity to cut carbon emissions in the near future, and the Sustainable Skies Act could encourage a quicker transition from fossil fuels.
Senator Sheldon Whitehouse has also introduced S. 1608, the Senate companion to Representative Brownley’s Sustainable Aviation Fuel Act (H.R. 741), which would establish an aviation-only low carbon fuel standard (LCFS). The bill aims to establish a grant program of $1 billion to expand the number of SAF facilities and infrastructure. The bill would require the U.S. Environmental Protection Agency (EPA) to establish LCFS for the SAF producers and importers. It would also require the Department of Defense (DOD) to increase utilization of SAF to 10% beginning in 2024, providing SAF is cost competitive with conventional jet fuels.
More information on these legislative pieces can be found here and here.