Guidance defers allowing U.S. producers to access the GREET model for calculating SAF tax incentives
Clean Fuels, ASA, NOPA and U.S. Canola urge using the most recent version of the GREET model as the “similar methodology” option for determining SAF tax credit eligibility.
SAF derived from co-processing is ineligible for the tax incentive. Treasury should adopt GREET as the similar methodology.
Treasury should adopt the U.S. Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model as the secondary methodology for calculating tax credits for sustainable aviation fuel (SAF) produced
Treasury should use GREET -- a U.S. lifecycle carbon emissions accounting model -- to determine tax credits for U.S. produced fuels.
It is critical that Treasury and IRS implement a verified, current, and science-based emissions rate methodology to set tax credit values.
In 2021, while petroleum production fell, the biodiesel and renewable diesel industry grew and added jobs. Stable tax incentives were a key reason.
The biodiesel tax incentive supports thousands of rural jobs and environmental benefits worth $4 billion in 2020.
The industry's federal policy priorities include stable tax incentives, funding for infrastructure, and optimizing the RFS to achieve carbon reductions.
Using the GREET model will support investments by farmers, oilseed processors and domestic producers to meet the SAF Grand Challenge
Clean Fuels Welcomes Amendment to Limit, Save, Grow Act That Preserves Biodiesel Tax Credit Extension
Eliminating retroactive tax expiration limits uncertainty for biodiesel and renewable diesel producers.
Clean Fuels Alliance America is taking a leading role in ensuring that these policies facilitate, rather than derail, the industry’s progress.