Aviation Groups Lobby for Biodiesel Incentive Extension

 - April 16, 2019, 10:41 AM

Business aviation and other general and commercial aviation industry groups are urging Congress to extend a now-expired biodiesel tax incentive that they say would ensure future production and growth of sustainable alternative jet fuels (SAJF). On April 12, the consortium delivered letters to Senate Finance Committee Chairman Charles Grassley and Ranking Member Ron Wyden requesting extension of the incentive under Section 40A of the Tax Extender and Disaster Relief Act (S.617).

“An extension of this credit will provide the industry with the stability necessary to continue investing in technology that will generate economic and environmental benefits with globally significant impacts,” states the letter signed by Airlines for America, Air Line Pilots Association, Cargo Airline Association, GAMA, NATA, NBAA, and Regional Airline Association.

SAJF is a drop-in fuel and as such can be delivered to airport common storage and fuel distribution systems and blended seamlessly with petroleum-based jet fuel, according to the letter. It also notes that the use of SAFJ by airlines and business aviation is growing, citing a previously closed refinery in California that was re-opened for alternative fuel production and has been delivering SAJF that’s used by select airlines and business aviation operators. The use of SAJF in business aviation was highlighted at an event in January at Van Nuys Airport. 

Several additional commercial and business aviation companies have or are seeking offtake agreements for future SAJF supply, the letter adds. “While we have made significant progress, we must scale up supply and enhance cost-competitiveness to get the nascent SAJF industry over the cusp.”

A companion letter was sent to House Ways and Means Committee Chairman Richard Neal and Ranking Member Kevin Brady, NATA said.