Airport Alert: Biden Administration Reveals New Efforts to Promote Sustainable Aviation Fuels
September 9, 2021
Today, the Biden Administration announced a series of new actions it will take across the federal government, and with the support of airports, airlines, fuel producers, and aircraft manufacturers, to produce three billion gallons of sustainable aviation fuel (SAF) and reduce aviation emissions by 20 percent by 2030. The Administration also plans to release an aviation climate action plan in the coming months, which will set forth a comprehensive plan for aviation.
Key federal actions include:
• A new, government-wide Sustainable Aviation Fuel Grand Challenge to meet the growing demand for SAF by working with stakeholders to reduce costs, enhance sustainability, and expand production and use, with the goal of supplying at least 3 billion gallons of SAF per year by 2030 and, by 2050, sufficient SAF to meet 100% of aviation fuel demand;
• New and ongoing funding opportunities to support sustainable aviation fuel projects and fuel producers totaling up to $4.3 billion;
• An increase in R&D activities to demonstrate new technologies that can achieve at least a 30% improvement in aircraft fuel efficiency;
• Efforts to improve air traffic and airport efficiency to reduce fuel use, eliminate lead exposure, and ensure cleaner air in and around airports; and
• The demonstration of U.S. leadership both internationally and through the federal example.
The announcement also highlighted the commitments many airports have already made to provide more sustainable operations, including emissions reduction efforts, operational efficiency improvements, and support for SAF refueling infrastructure.
Finally, the announcement underscored the need for a SAF tax credit to help cut costs and rapidly scale domestic production of sustainable fuels for aviation. During this Congress, legislation, such as the Sustainable Skies Act, has been introduced that would create a tax credit starting at $1.50 per gallon for blenders that supply SAF with a 50% or greater reduction in greenhouse gas emissions compared with standard jet fuel. The same sponsors of this legislation are advocating for a blender's tax credit to be included in the reconciliation package, which both the House and Senate are currently working to finalize. AAAE has joined a coalition of SAF producers, airlines and other aviation stakeholders in advocating for federal support for SAF, including the addition of a refundable, long term SAF tax credit in the upcoming reconciliation bill.