WASHINGTON D.C. — As President Biden kicks off a sequence of occasions targeted on rural funding, 70 trade leaders masking almost your complete provide chain for Sustainable Aviation Gasoline (SAF) – together with main airways – known as on the Biden Administration to unleash progress in de-carbonizing aviation by recognizing the U.S. Division of Vitality’s Argonne GREET mannequin below 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 elements of de-carbonization, together with “local weather good and regenerative feedstock practices” supported by the IRA.
Thankfully, the IRA explicitly permits for the usage of “any related 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 facet of the ‘full gasoline lifecycle’” — from “land use modifications” to “all phases of gasoline and feedstock manufacturing and distribution.” Argonne GREET clearly meets statutory necessities, and in contrast to any new method that will invite additional delay, it’s well-settled, sturdy, and up to date repeatedly.
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 vitality jobs. Nevertheless, modeling uncertainty at present is a multiyear growth downside because of the buildout schedules of SAF manufacturing services.” Part 40B of the IRA can’t be applied or used successfully if bio-innovators don’t urgently obtain readability and certainty on this challenge.
The administration ought to instantly acknowledge Argonne GREET and supply the knowledge that may help long-term planning and funding in a extra sustainable future for aviation.
The total letter and checklist of signatories is obtainable right here.
