Biofuel trade association Growth Energy recently issued a statement commending a large, bipartisan, bicameral group of lawmakers for urging the Biden administration to finalize its revisions to the Department of Energy’s GREET model.
The lawmakers’ letter also pushes the administration to ensure that the model makes American biofuel producers eligible for tax credits under the Inflation Reduction Act (IRA).
“As the March 1 deadline for the final version of the Sustainable Aviation Fuel (SAF) tax credit approaches, this letter reflects broad support from across the country to include biofuels in the SAF opportunity,” said Growth Energy CEO Emily Skor. “GREET is the most accurate model and the only one that accounts for all of the climate-smart innovations happening on farms across America’s heartland. By embracing GREET we can secure a win for both our environment and for the rural economy, as we begin to chart a course forward for American-made sustainable aviation fuel.”
“We applaud this bipartisan group of lawmakers for protecting the interests of biofuel producers and their farm partners, and for their commitment to using sound science as the basis for awarding tax credits under the IRA,” Skor added.
The full letter is available here.
Background
Written in the IRA is a Sustainable Aviation Fuel tax credit. The value of this credit is determined on a sliding scale, equal to $1.25 plus an additional $0.01 for each percentage point by which the lifecycle emissions reduction of such fuel exceeds 50 percent.
The credit value depends on the carbon intensity (CI) of the fuel, as determined by either a model development by the International Civil Aviation Organization called the CORSIA model or a “similar methodology.”
Growth Energy has continued to advocate for use of the U.S. Department of Energy (DOE) Argonne National Lab GREET model as a similar model. This model, which is updated regularly compared to CORSIA, allows users to account for climate smart and regenerative feedstock production practices.
In December 2023, the U.S. Treasury released guidance that named the GREET model but made its use subject to an update to the model.
The biofuels industry is working to ensure that any proposed modifications be run through the normal, scientific, agency and public processes.
Growth Energy’s members operate and support biomanufacturing facilities at the heart of America’s bioeconomy, delivering a new generation of plant-based energy and climate solutions. More information can be found on the company’s website.
