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A Bipartisan bill was introduced in the U.S. House of Representatives on Tuesday to strengthen the sustainable aviation fuel (SAF) industry and reduce emissions.
The Securing America's Fuels Act (SAF Act) was introduced by representatives Sharice Davids (D-KS-03) and Mike Flood (R-01-NE). The SAF industry is currently reliant on the 45Z Clean Fuel Production Tax Credit to make production economically viable. Recent legislation extended the credit for all clean fuels but eliminated the SAF-specific bonus. The goal of the bill is to give the industry that bonus back.
"Investing in sustainable aviation fuel isn't just good for the environment — it's good for Kansas farmers, our communities, and our economy," said Davids. "The SAF Act ensures that clean fuel production incentives are strong and long-term so businesses, farmers, and innovators can plan for the future with confidence. The bipartisan support shows the incredible potential we have to build a healthier, stronger, and more prosperous future for generations to come."
The bill would allow qualifying SAF producers to receive up to $0.35 or $1.75 per gallon. Additionally, the 45Z Clean Fuel Production Tax Credit would be extended for all clean fuels through 2033. SAF is made from bio-based feedstocks and can reduce lifecycle greenhouse gas emissions by up to 80% over legacy fuels, according to the NBAA. Supporters of the bill claim the fuel could make a new market for domestic farmers to grow crops to produce the fuel.
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"It is crucial that Congress finds ways to support farmers with good domestic policy, at this time when international trade negotiations have left farmers in difficult market conditions," said Richard Fotenot, president of the Louisiana Farm Bureau. "Congressional policy changes can also provide relief to American consumers. The SAF Act does both. It creates consistency in domestic aviation fuel markets in a sustainable manner important to consumers. We are grateful to Congressman Carter and his colleagues for continuing to find ways to support these efforts through ideas like the SAF Act."
"NBAA thanks Reps. Flood and Davids for introducing this measure and understanding SAF's economic and sustainability benefits," said Ed Bolen, NBAA president and CEO. "Restoring the full credit provides the clarity and stability needed to unlock investment, expand supply and accelerate progress toward our industry's long-term environmental commitments."