Air Transport Association Applauds Agreement

This week, the US Departments of Energy (DOE) and Agriculture (USDA) agreed to release up to $25 million in funding for research and development of biofuels, including aviation biofuels. That decision was heralded by the Air Transport Association, lobbying group for most major US airlines.

ATA is a founding and principal member of the Commercial Aviation Alternative Fuels Initiative (CAAFI), and has been working to hasten the availability of these funds, pursuant to the Food, Conservation, and Energy Act of 2008 (commonly known as the 2008 Farm Bill).

This announcement is the first step in implementing provisions found in the 2008 Farm Bill that provide grants for commercial-scale biofuel demonstration projects, including those that could ultimately produce clean, homegrown, renewable jet fuel. This program will work in conjunction with other provisions in the Farm Bill that were implemented earlier this year to provide loan guarantees for construction of commercial-scale alternative fuels production facilities.

"We are thrilled that the Obama administration has worked quickly to secure this funding for alternative energy," said ATA President and CEO James C. May. "This commitment to the research and development of advanced renewable fuels will allow for commercial-scale demonstration projects and other important activities that will move us closer to commercially viable, environmentally friendly alternative jet fuel. ATA and its member airlines look forward to working with the federal government to further promote the rapid development of these exciting new fuel sources."

ATA airline members and their affiliates transport more than 90 percent of all US airline passenger and cargo traffic.

FMI: www.airlines.org, www.energy.gov, www.usda.gov