Reuters: Biden Administration to Delay SAF Subsidy Guidance Until December

President Joe Biden’s administration likely will delay until December a decision on whether to make it easier for sustainable aviation fuel (SAF) made from corn-based ethanol to qualify for subsidies under the climate law, two sources familiar with the discussions told Reuters. At issue is a requirement in last year’s Inflation Reduction Act that SAF producers seeking tax credits must demonstrate with an approved scientific model their fuel generates 50% less greenhouse gas emissions over its lifecycle than petroleum fuel. Ethanol producers have asked the administration to adopt a model that would enable ethanol-based SAF to qualify while environmentalists want standards that would favor inputs like used cooking oil and animal fat. A decision was expected sometime this month, though the administration has been divided. Start a 1-month Pro Farmer trial for just $1.