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Wed, Nov 20, 2024

Biden Continues Effort to Finalize Clean Fuel Regs

Act Would Give Tax Credits to Sustainable Aviation Fuel Producers

Current US President Joe Biden recently clarified his intention to finalize the Clean Fuel Program before leaving office for good in 2025. This regulation would award tax credits to companies that produce low-emission and sustainable aviation fuels (SAF).

"I'm not going to make any announcements, except that we're working very hard to finish the rules," an official stated. The program, if cleared, would take effect next year.

Biden announced his plans while en route to the annual G20 Summit, held this year in Rio de Janeiro, Brazil.

 "Some may seek to deny or delay the clean energy revolution that's underway in America, but nobody - nobody - can reverse it,” Biden stated. “Nobody. Not when so many people, regardless of party or politics, are enjoying its benefits. Not when countries around the world are harnessing the clean energy revolution to pull ahead themselves." 

The Clean Fuel Program, part of the Inflation Reduction Act, introduces tax credits to incentivize the production and use of Sustainable Aviation Fuel (SAF) and other green transportation fuels. The program aims to help the aviation industry reach net-zero carbon emissions by 2050, with a goal of producing 3 billion gallons of SAF annually by 2030.

This program represents a strategic effort to decarbonize transportation, but its success hinges on expanding SAF availability and reducing costs. Current SAF production levels are far behind their marks. With it being relatively new, SAF is also pricey and difficult to certify.

The Biden administration also hopes to perform research on the environmental impacts of liquefied natural gas (LNG), which has been explored as a greener jet fuel alternative, before being booted from the White House. To conduct the study, Biden ordered a freeze on new liquefied natural gas permits. The 2024 President-elect Donald Trump has assured that he will reverse this pause after taking office.

FMI: www.faa.gov

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