WASHINGTON, D.C.—Development Power, the nation’s largest biofuel commerce affiliation, recommended a big bipartisan, bicameral group of lawmakers right now for urging the Biden administration to finalize its revisions to the Division of Power’s Greenhouse Gases, Regulated Emissions and Power Use in Applied sciences (GREET) mannequin. The lawmakers’ letter additionally pushes the administration to make sure that the mannequin makes American biofuel producers eligible for tax credit underneath the Inflation Discount Act (IRA).
“Because the March 1 deadline for the ultimate model of the Sustainable Aviation Gas tax credit score approaches, this letter displays broad help from throughout the nation to incorporate biofuels within the SAF alternative,” stated Development Power CEO Emily Skor. “GREET is probably the most correct mannequin and the one one which accounts for the entire climate-smart improvements occurring on farms throughout America’s heartland. By embracing GREET we are able to safe a win for each the environment and for the agricultural financial system, as we start to chart a course ahead for American-made sustainable aviation gasoline (SAF).”
“We applaud this bipartisan group of lawmakers for safeguarding the pursuits of biofuel producers and their farm companions, and for his or her dedication to utilizing sound science as the premise for awarding tax credit underneath the IRA,” stated Skor.
The lawmakers’ letter is obtainable right here.
Background
Written within the Inflation Discount Act (IRA) part 40B is a Sustainable Aviation Gas tax credit score. The worth of this credit score is set on a sliding scale, equal to $1.25 plus a further $0.01 for every share level by which the lifecycle emissions discount of such gasoline exceeds 50 %.
The credit score worth depends upon the carbon depth (CI) of the gasoline, as decided by both a mannequin growth by the Worldwide Civil Aviation Group known as the CORSIA mannequin or a “related methodology.”
Development Power has continued to advocate to be used of the U.S. Division of Power (DOE) Argonne Nationwide Lab GREET mannequin as an identical mannequin. This mannequin, which is up to date repeatedly in comparison with CORSIA, permits customers to account for local weather good and regenerative feedstock manufacturing practices.
In December 2023, the U.S. Treasury launched steerage that named the GREET mannequin however made its use topic to an replace to the mannequin. It’s a optimistic step that GREET is known as, nevertheless, the biofuels trade is working to make sure that any proposed modifications be run by way of the conventional, scientific, company, and public processes and never pushed by a aim to control the mannequin to provide a pre-determined coverage outcome.
