WASHINGTON D.C. — As President Biden kicks off a sequence of occasions centered on rural funding, 70 trade leaders masking almost the complete provide chain for Sustainable Aviation Gas (SAF) – together with main airways – referred to as on the Biden Administration to unleash progress in de-carbonizing aviation by recognizing the U.S. Division of Vitality’s Argonne GREET mannequin underneath Part 40B(e) of the Inflation Discount Act.
In an open letter to Treasury Secretary Janet Yellen, the authors clarify that “our potential to draw funding and construct out U.S. SAF capability will depend upon how this system determines credit score eligibility and valuation.” The default mannequin for evaluating SAF misses key features of de-carbonization, together with “local weather good and regenerative feedstock practices” supported by the IRA.
Luckily, the IRA explicitly permits for using “any comparable methodology” for figuring out SAF credit score eligibility and valuation. Because the letter explains, the Argonne GREET mannequin “incorporates the newest biorefining and feedstock manufacturing efficiencies.” It accounts for “each side of the ‘full gasoline lifecycle’” — from “land use modifications” to “all levels of gasoline and feedstock manufacturing and distribution.” Argonne GREET clearly meets statutory necessities, and in contrast to any new strategy that may invite additional delay, it’s well-settled, sturdy, and up to date usually.
The authors observe: “With the fitting market alerts, we are able to de-carbonize aviation and spur a brand new wave of U.S. innovation and clear power jobs. Nonetheless, modeling uncertainty immediately is a multiyear improvement drawback because of the buildout schedules of SAF manufacturing amenities.” Part 40B of the IRA can’t be applied or used successfully if bio-innovators don’t urgently obtain readability and certainty on this situation.
The administration ought to instantly acknowledge Argonne GREET and supply the knowledge that may assist long-term planning and funding in a extra sustainable future for aviation.
The complete letter and checklist of signatories is out there right here.
