A group of aviation stakeholders has welcomed\ncongressional legislation including provisions aimed squarely at promoting the\ndevelopment and use of sustainable aviation fuels (SAF).<\/p>\n\n\n\n
The House and Senate approved the legislation last week,\nas part of a fiscal year 2020 appropriations package. The language contains a\nrenewal-and-extension of the biodiesel tax incentive, for which certain fuels\nare eligible.<\/p>\n\n\n\n
The funding measure restores the expired Section 40A\nbiodiesel credit through 2022. Under that provision, a tax credit is available\nto qualified producers, or blenders of sustainable fuels derived from biomass,\none of several SAF pathways, which meet applicable ASTM specifications.<\/p>\n\n\n\n
The biodiesel tax incentive remains critical to the\nindustry\u2019s efforts to research, produce and scale SAF use. Ten years ago, the\nbusiness aviation community made a commitment to sustainability and carbon\nneutral growth. Utilization of SAF by business aviation operators is an\nimportant part of this commitment, along with rapid and continuing advancements\nin fuel efficiency, advanced aerodynamics and noise reduction.<\/p>\n\n\n\n
The Sustainable Aviation Fuels Coalition \u2014 which includes\nthe European Business Aviation Association (EBAA), General Aviation\nManufacturers Association (GAMA), International Business Aviation Council\n(IBAC), National Air Transportation Association (NATA) and National Business\nAviation Association (NBAA) \u2014 has demonstrated the safe, real-world use of SAF\nand business aviation\u2019s commitment to sustainability.<\/p>\n\n\n\n
The stakeholder group is part of a growing coalition\nadvocating for a broader and long-term SAF tax credit applying to all pathways\nand promoting an investment in production capacity.<\/p>\n\n\n\n
\u201cNBAA\u2019s 11,000 member companies are committed to\nincreasing the utilization of SAF in our daily operations,\u201d said NBAA President\nand CEO Ed Bolen. \u201cThis innovative fuel can reduce C02 emissions by up to 80%,\nand they are a critical part of business aviation\u2019s commitment to\nsustainability.\u201d<\/p>\n\n\n\n
\u201cThis is a great example of the aviation industry working\ntogether and pushing for an incentive from Congress for companies to invest in\nthe production of sustainable aviation fuels,\u201d said Timothy Obitts, chief\noperating officer of NATA. \u201cThese tax incentives, coupled with state\ninitiatives like California\u2019s Low Carbon Fuel Standard program, will help\ncreate the supply of sustainable aviation fuels that the business aviation\nindustry is demanding. SAF is one of the critical pieces that will help the\nindustry achieve cleaner skies for future generations.\u201d<\/p>\n\n\n\n
\u201cWe are glad that Congress took action to extend the\nbiodiesel tax credit, which benefits certain sustainable aviation fuels,\u201d said\nPete Bunce, GAMA president and CEO. \u201cThe general aviation industry is\naggressively promoting the use of sustainable fuels, and we will continue to\nwork with policymakers and other stakeholders to support its use. It is our\ncommitment that 2020 will build upon the momentum of this past year through a\nMarch SAF summit in Washington and other events and initiatives.\u201d<\/p>\n\n\n\n
\u201cCongressional action to renew and extend the biodiesel\ntax incentive demonstrates continued U.S. leadership among its international\npeers to encourage the production and use of SAF, a critical technology to\nreducing aviation\u2019s greenhouse-gas emissions,\u201d said Kurt Edwards, director\ngeneral of IBAC. \u201cAt the International Civil Aviation Organization, IBAC, on\nbehalf of the global business aviation sector, has called on all governments to\nput in place such policies, which will enable the industry to grow sustainably\nwhile bringing economic activity and connectivity to all corners of the world.\u201d<\/p>\n\n\n\n