June 25, 2021

A companion bill to the House of Representatives’ Sustainable Skies Act, which creates a performance-based blender’s tax credit to incentivize the production and use of sustainable aviation fuel (SAF), was introduced in the Senate this week.

SAF is a drop-in alternative to conventional jet fuel that will ensure real reductions in the aviation sector’s global greenhouse gas (GHG) emissions.

Specifically, the bill would establish a long-term blender’s tax credit ranging from $1.50/gallon up to $2.00/gallon for fuels that achieve a 100% GHG emissions reduction.

It was introduced in the Senate by U.S. Sens. Sherrod Brown (D-OH), Reverend Raphael Warnock (D-GA), Maria Cantwell (D-WA) and Patty Murray (D-WA). The legislation was introduced in the House by Reps. Brad Schneider (D-10-IL), Dan Kildee (D-5-MI) and Julia Brownley (D-26-CA).

SAF is a low-carbon synthetic jet fuel derived from sustainable feedstocks, including cellulosic biomass, wastes and residues, waste steel mill gases and captured CO2, which can be used safely in any turbine-powered aircraft. SAF potentially can reduce lifecycle GHG by up to 80% compared to conventional jet fuel and is considered pivotal to achieving the industry’s goal of a 50% net reduction in CO2 emissions in 2050.

Through a dedicated federal tax credit, similar to those applied to other renewable fuels early in their development, the production of SAF can be accelerated, and the fuel can become commercially viable.

View NBAA’s statement from the House introduction of the bill.