FAA EXTENDS CUTS TO AIRLINES’ MINIMUM FLIGHT REQUIREMENTS AT NY AIRPORTS
September 24, 2023
On August 2, 2023, Reuters reported that the Biden Administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel (“SAF”) made from corn-based ethanol to qualify for subsidies under the White House’s signature climate law. At issue is a requirement in last year’s Inflation Reduction Act (IRA) that SAF producers seeking tax credits must demonstrate with an approved scientific model that their fuel generates 50 percent less greenhouse gas emissions over its lifecycle than petroleum fuel. The administration has a goal to supply at least 3 billion gallons of SAF per year by 2030 as part of its broader effort to decarbonize the transport sector. By 2050, it hopes the SAF industry – which is now miniscule – will meet 100 percent of aviation fuel demand at around 35 billion gallons per year.
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