Biden-Harris Administration Companions announce up to date GREET mannequin to measure lifecycle emissions from Sustainable Aviation Fuels to be launched in early 2024.
The U.S. Division of the Treasury and Inside Income Service (IRS) launched steering on the Sustainable Aviation Gas (SAF) Credit score established by the Inflation Discount Act (IRA), a part of President Biden’s Investing in America agenda to create good-paying jobs and cut back local weather air pollution by spurring innovation within the aviation business.
The Treasury Division labored intently with Biden-Harris Administration companions, together with the Environmental Safety Company (EPA), Division of Transportation (DOT), Division of Agriculture (USDA), and Division of Power (DOE) on right now’s Discover.
Janet L. Yellen, Secretary of the Treasury mentioned:
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The Biden Administration is driving American innovation to create good-paying jobs and assist the U.S. clear hurdles in our clear vitality transition.
“Incentives within the Inflation Discount are serving to to scale manufacturing of low-carbon fuels and reduce emissions from the aviation sector, one of the difficult-to-transition sectors of our economic system.”
Jennifer M. Granholm, U.S. Secretary of Power mentioned:
President Biden’s Investing in America agenda is creating pathways and incentives for innovators to create a cleaner, extra sustainable future.
“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, and DOE is dedicated to supporting this effort which can result in cleaner skies for all.”
Tom Vilsack, U.S. Secretary of Agriculture mentioned:
The Biden-Harris Administration is dedicated to harnessing the potential of sustainable aviation gas to develop new financial alternatives for American agricultural producers.
“Right now’s announcement is the subsequent step in making this 36-billion-gallon business all of the extra potential. By powering aviation by way of low-carbon fuels, farmers can earn further revenue, faucet into value-added climate-smart agriculture markets, and meet the demand for an aviation business that seeks to speed up sustainable manufacturing.”
Pete Buttigieg, U.S. Transportation Secretary mentioned:
America ushered within the jet age, and aviation is a key a part of our economic system, society, and lifestyle.
“However the security and sustainability of aviation rely on its potential to achieve its aim of net-zero carbon emissions by 2050.”
“The time is now. That’s why President Biden is advancing the event of sustainable aviation fuels that can assist us cut back carbon air pollution whereas supporting financial development and creating alternative in American aviation.”
John Podesta, Senior Advisor to the President for Clear Power Innovation and Implementation mentioned:
Sustainable aviation gas is a crucial instrument for tackling the local weather disaster.
“Right now’s steering from Treasury offers certainty that a number of pathways can be found to producers as they compete to decarbonize the aviation sector.”
The Treasury Division’s steering offers necessary readability round eligibility for the SAF Credit score. The credit score incentivizes the manufacturing of SAF that achieves a lifecycle greenhouse gasoline emissions discount of at the least 50% as in contrast with petroleum-based jet gas. Producers of SAF are eligible for a tax credit score of $1.25 to $1.75 per gallon.
SAF that decreases GHG emissions by 50% is eligible for the $1.25 credit score per gallon quantity, and SAF that decreases GHG emissions by greater than 50% is eligible for a further $0.01 per gallon for every share level the discount exceeds 50%, as much as $0.50 per gallon.
Below the steering issued right now, quite a few fuels will qualify for the credit score, together with legitimate biomass-based diesel, superior biofuels, cellulosic biofuel, or cellulosic diesel which have been accredited by EPA beneath the Renewable Gas Normal (RFS).
Fuels that obtain a 50% or better discount in lifecycle greenhouse gasoline emissions beneath the latest Carbon Offsetting and Discount Scheme for Worldwide Aviation (CORSIA) customary will proceed to qualify beneath right now’s steering. As well as, EPA, DOT, USDA, and DOE are saying their dedication to launch an up to date model of DOE’s GREET mannequin by March 1, 2024.
Pending additional steering from the Treasury Division, the up to date GREET mannequin will present one other methodology for SAF producers to find out the lifecycle GHG emissions charges of their manufacturing for the needs of qualifying for the SAF Credit score for SAF offered or used throughout calendar years 2023 and 2024.
The up to date mannequin will incorporate new knowledge and science, together with new modeling of key feedstocks and processes utilized in aviation gas. The up to date mannequin may even combine different classes of oblique emissions like crop manufacturing and livestock exercise, along with finest out there science and modeling of oblique land use change emissions.
The up to date mannequin may even combine key greenhouse gasoline emission discount methods corresponding to Carbon Seize and Storage, Renewable Pure Gasoline, Renewable Electrical energy, and Local weather-Sensible Agriculture Practices.
U.S. Division of the Treasury, IRS Launch Steerage to Drive American Innovation, Reduce Aviation Sector Emissions, WASHINGTON, D.C., December 15, 2023
