The University of Illinois Farm Policy News says the Biden administration is expected to release a climate model for its sustainable aviation fuel subsidy program on Tuesday.
The rule will dictate how ethanol producers can use climate-smart agriculture to qualify for tax credits in the production of SAF. The ethanol industry views SAF as a way to build demand for its products going forward, as gasoline consumption is expected to decline. A Reuters report says the administration will release a preliminary climate mode for its sustainable aviation fuel subsidy program in the coming weeks that’s more restrictive than what the ethanol industry had expected.
The report says it will leave producers with a pathway to the subsidies if they can partner with corn growers that use sustainable farming practices. “To access SAF subsidies, producers must demonstrate that their feedstock is 50 percent lower in emissions than jet fuel,” Reuters says.
