Sponsors (2)
The bill accelerates domestic SAF production, R&D, and lifecycle-based emissions reductions through tax credits, grants, procurement rules, and credit markets—benefiting producers, workers, and the climate—while imposing notable federal costs, compliance burdens, and risks of higher consumer prices and supply/land‑use trade‑offs.
Domestic SAF producers, energy companies, and related workers will get substantial investment incentives (tax credits, program support) that lower capital costs and encourage new SAF facilities and jobs.
Air travelers, communities, and the general public stand to gain lower aviation lifecycle greenhouse gas emissions over time, improving climate outcomes and long-term public health.
Producers, universities, national labs, and technology developers will receive targeted grant and research funding (competitive grants and R&D authorizations) to accelerate SAF production, infrastructure, and non-CO2 aviation science.
Taxpayers and the federal budget face higher costs and reduced federal revenue from investment tax credits, multi‑year grant programs, and R&D authorizations, increasing deficit or crowding out other spending if not offset.
Travelers, households, and businesses may face higher airfares and freight costs if producers pass compliance and credit costs into prices, raising consumer costs.
Producers, importers, and small developers will face significant compliance, lifecycle‑modeling, certification, and administrative burdens that create uncertainty, delay projects, and raise costs.
Based on analysis of 10 sections of legislative text.
Adds SAF production property to the ITC, creates an EPA low‑carbon aviation fuel standard, funds SAF grants/research, mandates DOD buy 10% SAF if cost‑competitive, and shifts clean fuel credit sunset dates.
Official title: To support the sustainable aviation fuel market, and for other purposes.
Introduced February 26, 2025 by Julia Brownley · Last progress February 26, 2025
Creates a package of tax, regulatory, procurement, grant, and research measures to accelerate production and use of sustainable aviation fuel (SAF). It adds SAF production property to the federal energy investment tax credit with a phased credit schedule, extends and adjusts clean fuel credit termination dates, requires an EPA federal low‑carbon aviation fuel standard, authorizes multi-year federal grants and FAA/DOE research funding, and directs the Department of Defense to buy at least 10% SAF for operational aviation when cost‑competitive and U.S. produced. The bill sets national aviation emissions reduction goals (35% by 2035 and net‑zero by 2050), defines key terms (qualified feedstocks; lifecycle and induced land‑use emissions), and funds competitive SAF projects and research through FY2026–2030 (and authorizes further DOE research). Several provisions take effect for fuel produced after late 2025–2027 and include regulatory deadlines for EPA and agency coordination.