Biofuel Proponents Seek To Exclude Refiners From Proposed Sustainable Aviation Fuel Credit
Biofuel proponents and several fuel marketer groups want more information from Congress on a proposed tax credit for sustainable aviation fuel.
In a letter Thursday, the groups asked Congressional leaders to exclude fuels made by co-processing biomass with petroleum at oil refineries from the Sustainable Aviation fuel Credit.
The group argues that doing so would ensure a level playing field for emerging technologies.
The letter was signed by biofuels advocates Growth Energy and the National Biodiesel Board as well as NATSO and SIGMA.
According to the letter, the group argues the “definitions of Sustainable Aviation Fuel in the legislation appear to allow eligibility for the federal tax incentives to expand as ASTM further develops SAF and aviation fuel specifications.”
Co-processed fuel is not eligible for the existing biodiesel and renewable diesel blenders’ tax credit. According to the letter, making co-processed diesel at an oil refinery does not “generate the same economic, environmental and societal benefits as producing renewable diesel at a stand-alone, greenfield facility.”
The group asks that the definitions be clarified to make certain refiners co-processing biomass are not eligible for the sustainable aviation credit.