Clean Fuels, ag groups calls for the adoption of US DOE’s GREET model for SAF tax credit
In North Dakota, Biomass Magazine reported that the Clean Fuels Alliance America, the American Soybean Association, the National Oilseed Processors Association and the U.S. Canola Association are urging the Biden administration to adopt the U.S. Department of Energy’s GREET model to calculate greenhouse gas (GHG) reductions for the sustainable aviation fuel tax credit.
On September 19, the groups sent a letter to John Podesta, senior advisor to the president for clean energy innovation and implementation, calling for the U.S. Department of Treasury to adopt GREET for the proposes of calculating GHG emissions reductions under the SAF tax credit, which was created by the Inflation Reduction Act.
The law creating the SAF tax credit includes language specifying that the GHG reduction of the fuel is to be calculated with “the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization” or a similar methodology. Representatives of the U.S. biofuel and agricultural industries have been urging Treasury to adopt GREET as a methodology to calculate GHG emissions reductions for the purposes of the SAF tax credit, noting it most accurately reflects current U.S. agricultural practices, according to the report.
“Advanced biofuel producers have announced plans to ramp up SAF production to more than 1 billion gallons in the next three years, with U.S. soybean and canola farmers and processors standing ready to meet feedstock demands,” they wrote. “Our producer members have invested $3.8 billion in new construction or optimization of facilities. Our farmer and processor members and others have invested $6 billion to expand or build new oilseed processing capacity in 10 U.S. states. These investments will add millions of pounds of renewable, low-carbon feedstock while creating thousands of jobs – including in construction – as well as new economic opportunities for rural communities and American farmers.”
Category: SAF
