Biofuel and Ag Leaders Call for Accountable Life Cycle Analysis for SAF Tax Credits

August 9, 2021

Biofuel and Ag Leaders Call for Accountable Life Cycle Analysis for SAF Tax Credits

Aug 9, 2021

Key Issues:EthanolFarm Policy

On Friday, Growth Energy, American Farm Bureau Federation, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and the Renewable Fuels Association sent a letter to the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means outlining its recommendations for a sound and effective sustainable aviation fuel (SAF) tax credit.

 

In an effort to decarbonize transportation and reduce aviation emissions, Congress is considering new legislation to establish a tax credit to promote and develop robust domestic SAF production. To be successful, the ag and biofuels coalition notes in their letter, the tax credit must be based on accurate carbon accounting in life cycle analysis (LCA) led by the U.S. Department of Energy:

 

“Numerous members of our respective organizations are poised to produce SAF or sustainable feedstocks for SAF. Many others are looking to work toward participation in the full value chain in the relatively near future. We recognize the importance of decarbonizing the aviation sector with low-carbon liquid fuels. Because biomass feedstocks are essential SAF sources, it is imperative that the tax credit properly account for the lifecycle emissions of these sources and the petroleum products these new fuels will replace.

 

“We urge you to make the U.S. Department of Energy (DOE) the lead agency in establishing a regularly updated LCA for any SAF credit. Across our federal government, DOE has the best resources, expertise, and current ability to assess lifecycle emissions fairly and scientifically.”

 

The letter also pointed out that carbon intensity estimates under the International Civil Aviation Organization for some SAF sources are “wildly inaccurate and incorrectly penalized” and cannot be supported. 

 

You can view the full letter here.

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