US fuel retailers rail against green aviation fuel tax credit
US fuel retailers are fighting the inclusion of a tax credit for sustainable aviation fuel in Democrats’ $430b spending bill, arguing SAF is more carbon intense and less efficient than renewable diesel. Lawmakers are offering a $1.25-$1.75 per gallon SAF credit depending on the feedstock used, as part of a tax and climate bill that aims to lower US carbon emissions by about 40% by 2030 and cut the federal budget deficit by $300b. The bill is expected to pass the Senate and move to the House with the SAF credit included next week. Democrats control the House and approval with the credit is expected. Fuel retailers fear the credit would shift vegetable oil and other renewable feedstocks to aviation, leaving less of it for fuel producers that make renewable diesel. The National Association of Truckstop Operators (NATSO) and SIGMA, a fuel marketers association, are urging lawmakers to oppose the Inflation Reduction Act of 2022 unless it provides tax parity between the biodiesel tax credit (BTC) and proposed SAF tax credit. A 2021 study from LMC International, an agricultural marketing consultancy, found that SAF production is less efficient at reducing carbon emissions than renewable diesel as more feedstock is required per gallon of output. “SAF cannot compete with other renewable fuels on an environmental basis,” said David Fialkov, executive vice president of government affairs at NATSO. Other environmental advocates have argued that all biofuels that divert lipid-based feedstocks such as animal fats and waste cooking oils from existing markets present significant sustainability concerns.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-08-09/general/us-fuel-retailers-rail-against-green-aviation-fuel-tax-credit
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US fuel retailers rail against green aviation fuel tax credit
US fuel retailers are fighting the inclusion of a tax credit for sustainable aviation fuel in Democrats’ $430b spending bill, arguing SAF is more carbon intense and less efficient than renewable diesel. Lawmakers are offering a $1.25-$1.75 per gallon SAF credit depending on the feedstock used, as part of a tax and climate bill that aims to lower US carbon emissions by about 40% by 2030 and cut the federal budget deficit by $300b. The bill is expected to pass the Senate and move to the House with the SAF credit included next week. Democrats control the House and approval with the credit is expected. Fuel retailers fear the credit would shift vegetable oil and other renewable feedstocks to aviation, leaving less of it for fuel producers that make renewable diesel. The National Association of Truckstop Operators (NATSO) and SIGMA, a fuel marketers association, are urging lawmakers to oppose the Inflation Reduction Act of 2022 unless it provides tax parity between the biodiesel tax credit (BTC) and proposed SAF tax credit. A 2021 study from LMC International, an agricultural marketing consultancy, found that SAF production is less efficient at reducing carbon emissions than renewable diesel as more feedstock is required per gallon of output. “SAF cannot compete with other renewable fuels on an environmental basis,” said David Fialkov, executive vice president of government affairs at NATSO. Other environmental advocates have argued that all biofuels that divert lipid-based feedstocks such as animal fats and waste cooking oils from existing markets present significant sustainability concerns.<br/>
