US lawmakers have now introduced the promised Sustainable Skies Act, which calls for a performance-based $1.50 - $2 per gallon blender's tax credit for sustainable aviation fuel SAF. The aim of the legislation is to spur the production of SAF and help the US airline industry reach its goal of eliminating net carbon emissions by 2050.
Reps. Brad Schneider (IL), Dan Kildee (MI) and Julia Brownley (CA) have introduced the Bill, which has been welcomed by airline lobby group, Airlines 4 America (A4A).
"A4A's goal of eliminating net carbon emissions by 2050 builds on the US airline industry's strong record of sustainability. The Sustainable Skies Act would go a long way toward improving the cost-competitiveness of sustainable aviation fuel, which is crucial to rapidly expanding its deployment by US carriers," said Airlines for America President and CEO Nicholas E. Calio. "The US airline industry has set an ambitious mid-term goal of making 2 billion gallons of SAF available for US carriers to use in 2030, and supportive measures like the Sustainable Skies Act will enable us to achieve that goal."
SAF currently results in up to 80 percent less carbon emissions than conventional jet fuel, but it costs three to times as much and is currently only available in limited quantities. The Sustainable Skies Act tax credit will encourage producers to make more of it and enable US airlines to use more of it. The credit will increase from $1.50 per gallon by one cent for each additional percentage of lifecycle greenhouse gas emissions savings demonstrated above 50 percent, further incentivizing the development and deployment of SAF providing higher emissions reductions.