Nearly 70 industry stakeholders for Sustainable Aviation Fuel (SAF) – from ethanol producers and agribusinesses to major airlines – are calling on the Biden Administration to move forward in de-carbonizing aviation by recognizing the U.S. Department of Energy’s Argonne GREET model under Section 40B(e) of the Inflation Reduction Act.
In an open letter to Treasury Secretary Janet Yellen, the authors explain that “our ability to attract investment and build out U.S. SAF capacity will depend on how the program determines credit eligibility and valuation.” The default model for evaluating SAF misses key aspects of de-carbonization, including “climate smart and regenerative feedstock practices” supported by the IRA.
Fortunately, the IRA explicitly allows for the use of “any similar methodology” for determining SAF credit eligibility and valuation. As the letter explains, the Argonne GREET model “incorporates the latest biorefining and feedstock production efficiencies.” It accounts for “every aspect of the ‘full fuel lifecycle’” — from “land use changes” to “all stages of fuel and feedstock production and distribution.” Argonne GREET clearly meets statutory requirements, and unlike any new approach that would invite further delay, it is well-settled, durable, and updated regularly.