[originally published in the Washington Examiner]
The Biden administration mentioned Friday it will permit ethanol-based fuels to be included in its sustainable aviation gas tax credit score {qualifications}, delivering a victory to corn growers.
In accordance with the Treasury Division, which revealed the tax credit score steerage, fuels that scale back greenhouse fuel emissions by a minimum of 50% are eligible for the credit score, thus permitting the ethanol-based gas to qualify.
However it’s going to additionally replace the methodology by March 1, which means any victory might be short-lived.
“Sustainable aviation gas will present low carbon gas made right here in America to assist decarbonize the toughest to achieve areas within the transportation sector,” Power Secretary Jennifer Granholm mentioned in a press release launched with the steerage from the Treasury.
The SAF steerage, which permits qualifying fuels to obtain a credit score of as much as $1.25 per gallon, comes after months of debate throughout the Biden administration over the matter. Divisions had been centered on whether or not to make use of the Division of Power’s Greenhouse Gases, Regulated Emissions, and Power Use in Applied sciences, or GREET, formulation, or a European mannequin that might permit the inclusion of fewer fuels.
The choice had been carefully watched by Midwestern states and the corn foyer, which seen the choice as one of many solely methods to develop ethanol demand at a time when extra drivers are opting to buy electrical autos slightly than gas-powered autos, partly as a result of client tax credit included within the Inflation Discount Act handed in 2022.
The steerage was praised by the Superior Biofuels Affiliation. “Recognizing {that a} one-size-fits-all strategy is impractical, the Biden administration’s acknowledgment of this actuality is essential for attaining important carbon reductions in air journey,” Michael McAdams, the group’s president, mentioned in a press release Friday.
Nonetheless, he added, “Our members stand prepared to offer the nation and world with sustainable low-carbon fuels. However their carbon discount potential can’t be realized with out governmental cooperation. As we await the total scope of this steerage when the foundations are finalized on March 1, 2024, we are going to proceed to advocate for the important thing function that SAF and different superior biofuels will play within the vitality transition to a low-carbon future.”
