Dec. 15 (UPI) — The U.S. Treasury Department Friday released details of an initiative to lower emissions produced by aviation fuel by encouraging American innovation in the sector.
The Sustainable Aviation Fuel credits are being administered through the Treasury, with consultation from the Environmental Protection Agency, Department of Transportation, Department of Agriculture and Department of Energy.
“Incentives in the Inflation Reduction are helping to scale production of low-carbon fuels and cut emissions from the aviation sector, one of the most difficult-to-transition sectors of our economy,” Treasury Secretary Janet Yellen said in a statement.
Yellen also pledged the credits will create jobs in the aviation fuel industry to “help the U.S. clear hurdles in our clean energy transition.”
The United States has a goal of reaching net-zero carbon emissions by 2050.
The newly issued guidelines lend clarity to the eligibility process for the SAF Credit. The Biden administration has a goal of helping to develop a greener aviation fuel in the United States that would cut carbon emissions by at least 50% compared to conventional petroleum-based jet fuel.
Such a fuel would be eligible for a tax credit of between $1.25 and $1.75 per gallon.
“Sustainable aviation fuel will provide low carbon fuel made here in America to help decarbonize the hardest to reach areas in the transportation sector, and DOE is committed to supporting this effort which will lead to cleaner skies for all,” Secretary of Energy Jennifer Granholm said in the Treasury’s statement.
Valid biomass-based diesel, advanced biofuels, cellulosic biofuel and cellulosic diesel that have been approved by the Environmental Protection Agency under the Renewable Fuel Standard will all qualify for the credit, according to the Treasury’s guidance.
“Today’s announcement is the next step in making this 36-billion-gallon industry all the more possible,” Agriculture Secretary Tom Vilsack said in a statement.
“By powering aviation through low-carbon fuels, farmers can earn extra income, tap into value-added climate-smart agriculture markets, and meet the demand for an aviation industry that seeks to accelerate sustainable production.”
