The Biden Administration Faces Delay in Releasing Aviation Fuel Emissions Model
New Climate Modeling Delay
The Biden administration announced a delay in releasing its new climate modeling for sustainable aviation fuel feedstocks. Sources revealed that disagreements over revision details caused the setback, frustrating the biofuels industry.
Uncertainty Over Subsidies
The slow progress on the revised modeling has extended uncertainty over whether corn-based ethanol will qualify for new subsidies for Sustainable Aviation Fuel (SAF) production under the Inflation Reduction Act.
Revised Model Delay
The administration has been divided on implementing the $1.25-per-gallon SAF tax credit, requiring a 50% greenhouse gas emissions reduction over petroleum jet fuel. The delay in finalizing the revised model has left the ethanol industry in limbo.
Industry Challenges
The ethanol industry aims to become a major SAF supplier but must demonstrate its climate benefits using an approved model. However, disagreements over the model’s revisions have stalled progress.
Environmental Concerns
Environmental groups advocate for a revised model that accurately accounts for carbon emissions from tilled land for crops. The White House spokesperson mentioned progress on critical decisions for updating the model and issuing Treasury guidance.
Commitment to SAF Production
Agriculture Secretary Tom Vilsack and EPA Administrator Michael Regan expressed commitment to meeting the administration’s goal of 3 billion gallons of SAF production annually by 2030. The Department of Energy’s response to the delay remains pending.
Verification Challenges
One of the remaining challenges is verifying farms’ use of climate-smart agricultural techniques, a critical factor in determining eligibility for the SAF tax credit. The industry may need to adopt additional practices to qualify.
Industry Optimism
Despite the delay, industry leaders like Growth Energy’s CEO, Emily Skor, remain optimistic. The focus is on ensuring that updates create real opportunities for American farmers to contribute to the SAF market.
