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Congress·In Committee·about 1 year ago

Congress Proposes New Standards and Tax Credits to Reach Net-Zero Aviation Emissions by 2050

Also known as: Sustainable Aviation Fuel Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(1)
Military Active
Neutral

The Defense Department would need to buy at least 10% sustainable aviation fuel, potentially affecting military fuel logistics and operations.

Positive Impacts(3)
Small Business Owner
Helps

New grant programs and tax credits could help small fuel producers and clean energy startups enter the sustainable aviation fuel market.

Farmer Rancher
Helps

Research into using cover crops for fuel production could create new revenue streams for farmers growing these crops.

Union Member
Helps

The bill requires consulting labor unions on fuel standards and could create new manufacturing jobs in domestic fuel production.

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.
EnergyClimate ChangeNational SecurityTaxesTransportation

Milestones

3 milestones3 actions
Feb 26, 2025House

Referred to the Subcommittee on Aviation.

Feb 26, 2025House

Referred to the Committee on Energy and Commerce, and in addition to the Committees on Transportation and Infrastructure, Armed Services, Science, Space, and Technology, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Feb 26, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

About 1 year after the bill becomes law

EPA must finalize new Low Carbon Aviation Fuel Standard regulations

Fuel producers and importers would face new requirements to gradually reduce the carbon footprint of jet fuel sold in the U.S.

Related News

5 articles
Politico·about 1 year ago

House Democrats Introduce Bold New Targets for Sustainable Aviation Fuel

Reps. Julia Brownley and Brad Schneider introduced the Sustainable Aviation Fuel Act, which sets a national goal for net-zero aviation emissions by 2050. The bill mandates the EPA to create a low-carbon fuel standard for jet fuel and requires the DOD to buy 10% sustainable fuel starting in 2025.

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Bloomberg News·8 months ago

Trump Tax Overhaul Slashes Sustainable Aviation Fuel Credits in 'One Big Beautiful Bill'

The 'One Big Beautiful Bill Act' signed by President Trump on July 4 modifies the 45Z clean fuel production credit, reducing the maximum incentive for sustainable aviation fuel from $1.75 to $1.00 per gallon. The move has sparked concern among aviation leaders aiming for net-zero targets by 2050.

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The Hill·3 months ago

Bipartisan Coalition Moves to Restore Aviation Fuel Tax Breaks After Budget Cuts

A bipartisan group of lawmakers led by Rep. Sharice Davids introduced the 'Securing America's Fuels Act' to reinstate the tax credit premium for sustainable aviation fuel that was eliminated by the OBBBA. The bill seeks to restore the $1.75 per gallon rate to keep net-zero goals within reach.

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Source Information

Document Type

Congressional Bill

Official Title

Sustainable Aviation Fuel Act

Bill NumberHR 1594
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Subcommittee on Aviation.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.