“Although there is a lot of interest in SAF, actual use in
2020 in the US was only 4.6 million gallons,” one source said.
“So, in an 11 to 18 billion-gallon US aviation fuel market,
that’s not a big number. As these companies actually look to
embrace SAF and not just make headlines, I believe they need
help moving product into the marketplace, and also from a
cost perspective since it’s more expensive.”
The most likely avenue for implementation of an SAF-specific
blenders credit is through modification of the existing
credit, U.S. Code Title 26, Section 40A.
Northeast States Pass Biofuel
Bills for Heating
The state legislatures of New York, Connecticut, and Rhode
Island passed bills recently to create new biofuel blending
standards for all liquid heating fuel sold in each state. The New
York bill calls for liquid heating fuel sold throughout the state to
contain at least 5 percent biodiesel (B5) or renewable diesel by
July 1, 2022, 10 percent in 2025, and 20 percent in 2030. The
state already requires all liquid heating fuel sold in Westchester
County and Long Island to contain 5 percent biodiesel. New
York City also requires B5 and was scheduled to increase its
minimum blends in the coming years. The new, more robust
bill would replace these requirements and broaden them to
the entire state.
Continued on page 24
Also in May, Senator Sheldon Whitehouse (D-RI)
introduced the Sustainable Aviation Fuel Act, for which
companion legislation was reintroduced in the House by
Representative Julia Brownley (D-CA) in February. Like
Schneider’s bill, the act would also establish a blenders credit
for SAF of between $1.50 and $1.75 a gallon. To prevent
double dipping, SAF would no longer be eligible for the existing
blenders tax credit. Whitehouse’s bill would also require EPA
to establish an aviation-only low carbon aviation fuel standard
that regulates jet fuel producers and importers. The measure
would create a grant program authorized at $1 billion over
five years to expand the number of facilities producing SAF
and build out infrastructure. In addition, the bill would require
the US defense department to use 10 percent SAF in 2024,
provided the fuel is “cost-competitive with fossil jet fuel and
readily available.” Whitehouse’s bill also directs the US energy
and agriculture departments to research cover crops for SAF
feedstock, and seeks to expand the existing energy investment
tax credit to include SAF production facilities and related
infrastructure.
Concerns exist about what an SAF blenders credit would
do to feedstock availability for methyl ester producers,
particularly the smaller ones. Furthermore, like the existing
blenders tax credit, the SAF credit would apply to qualified
imported fuel. Some would prefer to see the SAF blenders tax
proposal changed to a domestic SAF production credit.
The higher SAF credit proposal is justified, sources say,
because SAF costs more to produce, distribute, and implement
in the marketplace than biodiesel or renewable diesel.
DOWNTIME
DEFEATED
Continuously Welded Screws
Schedule 80 Pipe
3/8-Inch Thick Flights
Close Coupled Clocked
3-Bolt Drilling
AR 235/400 Wear Liners
High-Torque Design
Contact Us Today! 800.543.6558 | www.kwsmfg.com
www.rendermagazine.com Render August 2021 23
/www.rendermagazine.com
/www.kwsmfg.com