The Biden administration will release a preliminary climate model for its sustainable aviation fuel (SAF) subsidy program in the coming weeks that is more restrictive than the corn-based ethanol producers had hoped, two sources familiar with the matter told Reuters. Under the preliminary model, which could be released by May 15, ethanol is not expected to automatically qualify as a feedstock in the SAF subsidy program unless the corn involved is sourced from farmers using one of just three sustainable agriculture techniques – efficient tilling, use of cover crops and efficient fertilizer application – the sources said.
The sources said the model could be expanded to include a broader range of options when the administration issues its final rule later in the year.
To secure the $1.25 per gallon tax credit, SAF producers must demonstrate their fuel is 50% lower in emissions than jet fuel.
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