Washington, DC – Today, Congresswoman Julia Brownley (CA-26), Congressman Brad Schneider (IL-10), and Congressman Dan Kildee (MI-08) announced the introduction of the Expanding Clean Fuel Production Act, a bill that would extend the clean fuel production tax credit, also known as Section 45z, of the Inflation Reduction Act for 10 years. The Inflation Reduction Act created the clean fuel production credit (CFPC) for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF). This credit currently expires at the end of 2027.
“The 45z tax credit has been critical in helping to ramp up U.S. production of sustainable aviation fuel,” said Congresswoman Brownley. “However, we need to extend the credit long-term to provide market certainty and to ensure a safe and reliable supply of SAF to meet the needs of the aviation industry. I appreciate Congressman Schneider and Congressman Kildee’s partnership on this bill, and I look forward to working with stakeholders in the environmental, energy, and aviation community to extend the 45z credit and promote U.S. investment in this critical domestic fuel source.”
“I’m proud to introduce this legislation with Reps. Kildee and Brownley to extend the SAF credit, boost production of clean fuels and position the U.S. as a global leader in production and use of sustainable fuels,” said Congressman Schneider. “A ten-year extension would allow for sustained investment in production to accelerate the transition to cleaner fuels and to significantly cut greenhouse gas emissions from the aviation industry, in particular. We are already seeing the impact of the Inflation Reduction Act’s investments on U.S. production of sustainable fuels.”
“In my home state of Michigan, we have already seen the harmful effects of climate change on our Great Lakes,” said Congressman Kildee. “This legislation will help us continue producing clean energy and fuels here in the United States, to help create good paying jobs, provide new markets to Michigan farmers, and reduce carbon emissions from airplanes and other vehicles.”
“As the leading U.S. airline in SAF use and advocacy, we know that extending incentives for U.S. SAF producers by a full ten years is a necessary first step to grow the industry,” said Lauren Riley, Chief Sustainability Officer for United Airlines. “The continued leadership of Representatives Schneider, Kildee and Brownley is helping to assure U.S. competitiveness in SAF and clean fuels, while boosting U.S. agricultural producers and rural communities. We look forward to working with Representatives Schneider, Kildee and Brownley and their colleagues on both sides of the aisle to ensure that this tax credit is both extended and enhanced in a way that will maximize investment in SAF and other clean, low-carbon fuels.”
“Sustainable Aviation Fuel is the single most important method to decarbonize aviation in the coming decades, and LanzaJet applauds the leadership of Representatives Schneider, Kildee, and Brownley in advancing SAF tax incentives that will catalyze domestic investment in this critical sector,” said Jimmy Samartzis, LanzaJet CEO. “As the original sponsors of the IRA’s SAF Blender’s Tax Credit via the Sustainable Skies Act, Reps Schneider, Kildee, and Brownley continue to lay the foundation for a vibrant U.S. SAF industry by providing for ten years of policy certainty for domestic SAF producers via this important bill. We look forward to continuing to work with Representatives Schneider, Kildee, and Brownley to develop policy proposals that will both extend and enhance the IRA’s short term SAF tax credits and enable achievement of the goals of the SAF Grand Challenge.”
“We applaud Representative Schneider and his colleagues Representatives Kildee and Brownley for their efforts to extend incentives for SAF,” said Alison Graab, Executive Director of the SAF Coalition. “We look forward to working with them on both an extension as well as enhancing and strengthening the incentive. Advancing sustainable aviation fuel demonstrates a clear commitment to the environmental and economic promises SAF holds, and incentives that are durable and attract investment are essential to unlocking that potential and driving the progress needed to sustain and grow the SAF industry.”
The Inflation Reduction Act of 2022 enacted a tax credit for the production of SAF, aiming to halve carbon emissions in the aviation sector. The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Congresswoman Brownley authored with Representatives Schneider and Kildee in 2021.
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Issues: 118th Congress, Climate Crisis, Energy and Environment, Transportation and Infrastructure