Sponsors (2)
The bill accelerates domestic SAF production, research, and aviation decarbonization by combining credits, grants, procurement signals, and standards—benefiting producers, researchers, and long‑term climate goals—while increasing federal costs, adding compliance complexity, and creating near‑term risks of higher ticket/fuel prices and uneven regional impacts.
Domestic SAF producers, refiners, and project developers see improved project economics and stronger market demand through new investment tax credits, an extended production tax credit, competitive grants, and Department of Defense purchasing preferences.
Air travelers and the general public benefit from expected reductions in aviation lifecycle greenhouse gas emissions over time due to national targets, SAF incentives, and lifecycle-based fuel standards.
Producers, researchers, and the aviation industry gain multi-year grant and research funding (competitive grants and FAA/USDA-supported programs) to accelerate SAF commercialization, demonstration, and lifecycle/non‑CO2 research.
U.S. taxpayers face substantial additional federal cost and lost revenue from new and extended tax credits, multi-year grants, and research authorizations, increasing budgetary pressures or requiring offsets.
Passengers and general consumers risk higher ticket prices or fuel costs if airlines pass through increased production, compliance, or feedstock costs required to meet SAF standards and targets.
Fuel producers and small developers face increased compliance, documentation, and modeling burdens (including recapture risk and lifecycle/land‑use accounting), which raises project uncertainty and administrative costs.
Based on analysis of 10 sections of legislative text.
Expands tax credits and grants, sets aviation emissions targets, creates a federal low‑carbon aviation fuel standard, requires limited DOD SAF purchases, and funds SAF research.
Introduced February 26, 2025 by Julia Brownley · Last progress February 26, 2025
Creates a coordinated U.S. policy to accelerate production and use of sustainable aviation fuel (SAF). It expands and extends tax incentives for SAF production and clean fuel credits, sets national aviation emissions targets, funds grants and research, requires the EPA to set a low‑carbon aviation fuel standard, and directs limited Department of Defense SAF purchases when cost‑competitive and U.S.‑produced.