Read the full story at ClimateWire.
The Inflation Reduction Act is setting up a fight over the climate footprint of biofuels for aviation, with significant implications for the nation’s emissions trajectory, the U.S. transportation sector and rural communities.
In coming weeks, the Treasury Department will unveil a new sustainable aviation fuel (SAF) tax credit called for in the climate law last summer. It will give up to $1.75 to producers for each gallon of sustainable fuel, based on the amount of carbon reductions in the product compared to conventional jet fuel.
The credit could provide a major boon to biofuel products made of wastes and oils, but producers are also eyeing a big new market for corn-based ethanol.