Sustainable Aviation Fuel Act

Key Points

• This bill sets a national goal for the United States to reach net-zero greenhouse gas emissions from all domestic and international flights by 2050. To reach this target, it aims for a 35% reduction in aviation emissions by 2035 compared to levels seen in 2005.
• The EPA would be required to create a new 'Low Carbon Aviation Fuel Standard.' This system would require fuel producers and importers to gradually lower the carbon footprint of the jet fuel they sell. Companies that produce cleaner fuel could earn credits, while those that do not meet the standards would have to buy credits from others.
• Starting in October 2025, the Department of Defense would be required to make sure at least 10% of the jet fuel it buys for its operations is sustainable aviation fuel. This rule only applies if the cleaner fuel is made in the U.S. and costs about the same as regular jet fuel.
• The bill authorizes $200 million every year through 2030 for a grant program. This money would help companies build the infrastructure needed to produce, transport, and store sustainable fuels, as well as develop new technologies to make flying more environmentally friendly.
• To encourage private investment, the bill extends tax credits for companies producing sustainable aviation fuel until 2032. It also creates new tax incentives for building the factories and equipment needed to make these fuels, with the benefits slowly phasing out by 2039.
• The FAA and Department of Energy would receive funding to study how different crops can be turned into fuel and how to reduce the climate impact of 'contrails'—the white streaks planes leave in the sky. This research aims to help the entire aviation sector reach its climate goals.