The National Air Transportation Association (NATA), the National Business Aviation Association (NBAA) and the General Aviation Manufactures Association (GAMA) joined a coalition of over 60 organizations in applauding the introduction of congressional legislation to spur the development and use of sustainable aviation fuels (SAF).
The legislation establishes a $1.50 – $2.00 per gallon blender’s tax credit for SAF that achieves at least a 50 percent reduction in lifecycle greenhouse gas (GHG) emissions compared to conventional jet fuel, with the precise amount of the credit linked to the SAF’s GHG emissions performance.
Following a press conference by bill sponsors Representatives Brad Schneider (D-IL), Dan Kildee (D-MI), and Julia Brownley (D-CA), NATA President and CEO Timothy Obitts said, “The aviation industry stands together in its commitment to shift toward renewable energy sources in-order-to achieve its emission-reduction goals. The broad backing of this incentive is pivotal to effecting real change in the proliferation and competitiveness of SAF. The Sustainable Skies Act is a significant stride toward reaching a sustainable future.”
Pete Bunce, GAMA President and CEO said, “The general and business aviation industry is steadfast in its commitment to environmental sustainability with advances in aircraft technologies that result in more efficient wing, rotor, fuselage and engine design as well as revolutionary innovations like hybrid and electric aircraft. While we continue to advance these solutions, we also recognize that the increased use of sustainable aviation fuel (SAF) will also play a key role in reducing aviation’s CO2 emissions,” said Bunce. “The Sustainable Skies Act will help spur the private sector investments needed to boost the production, distribution and uptake of SAF. A blender’s tax credit will also assist in making SAF a cost-competitive alternative to conventional jet fuel. We applaud the leadership shown by Representatives Schneider, Kildee and Brownley to put forth this tax credit which will help our industry meet our long-standing environmental focus on addressing climate change.”
In a letter of support for the Sustainable Skies Act, the coalition noted the potential of the performance-based tax credit to provide the stability needed to incentivize advanced biofuel producers to focus on and invest in SAF production, as well as to “help make the low-carbon alternative to conventional jet fuel more cost-competitive, while driving the SAF industry towards investing in SAF with the greatest emissions reduction potential.”
“This important legislation is key toward the business aviation community’s aggressive work to meet its sustainability objectives,” said NBAA President and CEO Ed Bolen. “We applaud the leadership shown by Reps. Brad Schneider (D-10-IL), Dan Kildee (D-5-MI) and Julia Brownley (D-26-CA) in introducing this bill, which supports and strengthens a nascent industry that is critical to reducing aviation emissions.”