The U.S. Department of the Treasury has issued guidance on the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act. The news is positive for U.S. soybean farmers, according to the American Soybean Association.
The biofuels industry has pushed for use of the Argonne National Laboratory – GREET model to determine eligibility for the SAF Credit.
However, the Environmental Protection Agency determined GREET was insufficient on its own to determine greenhouse gas emissions. Instead, EPA will work with other agencies to develop a new GREET methodology to be released March 1. It would incorporate all aspects of a feedstock, including Climate-Smart Agriculture Practices.
EPA did determine that the methodology it uses for the Renewable Fuel Standard Program does satisfy these requirements. So, Treasury has determined SAF that currently qualifies as biomass-based diesel or advanced biofuel under the RFS will be considered as having a 50 percent greenhouse gas reduction for the purposes of this credit.
ASA says this action is positive for soy-based SAF, which will be eligible for the credit at the $1.25/gallon rate.
“Biofuels continue to be not only a viable market but a growing market when it comes to U.S. roadways and workforce fleets,” says Josh Gackle, ASA president. “There is legislation on the table that would expand biofuels’ great functionality and environmental benefits to ocean-going vessels. And now, with this guidance supporting soy and other plant-based feedstocks going into sustainable aviation fuel, the sky truly is the limit for soy.”
See a recent article with Growth Energy on the SAF Tax Credit: https://www.midwestfarmreport.com/2023/12/30/growth-energy-zeroes-in-on-e15-saf/
