Sustainable Aviation Fuel Act
Sponsored By: Representative Rep. Brownley, Julia [D-CA-26]
In Committee
Summary
Decarbonize U.S. aviation through sustainable aviation fuel. The bill sets national emissions goals and builds a policy stack of a federal Low Carbon Aviation Fuel Standard, Defense procurement rules, research programs, and tax incentives to speed domestic SAF production and use.
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- Department of Defense: Requires DoD to buy at least 10% SAF of operational aviation fuel starting October 1, 2025 when SAF is cost competitive and U.S. produced. Blended SAF counts toward the 10% and DoD may waive the requirement for national security with notice to Congress.
- Producers and investors: Extends the clean fuel production tax credit for SAF through 2032 and adds SAF production property to the energy investment tax credit with a phasedown of 24%, 18%, then 12% for later construction windows. Credits include recapture rules if SAF output falls below 80% of fuel from a facility.
- Regulators, researchers and markets: Creates an aviation Low Carbon Fuel Standard with at least 20% carbon intensity reduction by 2030 and 50% by 2050 plus credit trading and reporting. It authorizes $200 million per year for alternative fuel program support and $35 million per year for FAA research for FY2026–FY2030 and directs DOE research on SAF feedstocks and conservation practices.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
New low-carbon standard for jet fuel
EPA would write a national low‑carbon jet fuel rule within one year. Producers and importers would have to meet yearly carbon‑intensity targets, reaching at least 20% lower by 2030 and 50% by 2050 versus 2005. Fuels below the target could earn tradable credits; fuels above it could need to buy credits. Benchmarks would start the first full calendar year that begins two years after enactment, and violations would be enforced under Clean Air Act rules.
Tax shifts for SAF producers
SAF projects could get a new investment tax credit for property that produces or enables SAF. The rate would be 24% for construction starts in 2031, 18% for starts in 2032, and 12% for starts in 2033–2038, with credit recapture if SAF is under 80% of output in any of the first five years. It would apply to fuel produced after December 31, 2025. At the same time, the clean fuel production credit would end sooner: no credit for non‑SAF fuel sold after December 31, 2027, and no credit for SAF sold after December 31, 2032.
Aviation climate goals and definitions
The bill sets national aviation climate goals: cut emissions 35% by 2035 versus 2005 and reach net‑zero by 2050. It also defines what counts as sustainable aviation fuel and qualified feedstock, and how lifecycle emissions are counted, including land‑use change. These definitions would guide which fuels qualify for the bill’s programs and credits.
Pentagon to buy cleaner jet fuel
Starting October 1, 2025, DoD would need to buy sustainable aviation fuel equal to at least 10% of its operational jet fuel, if the SAF price is competitive and it is made or refined in the U.S. Blended SAF would count toward the 10%. DoD would have to certify the fuel is suitable for its aircraft before purchase. The Secretary could waive the rule for national security, but must notify Congress within 30 days and explain why.
Grants and research for cleaner aviation
The government would offer $200 million a year in FY2026–FY2030 for competitive grants to make, move, blend, or store SAF, or to build low‑emission aviation tech. These grant funds would stay available through September 30, 2030. The FAA would get $35 million a year in FY2026–FY2030 to study net‑zero aviation and non‑CO2 impacts like contrails. DOE would also run research on using cover crops as fuel feedstock, with funding as needed.
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Sponsors & CoSponsors
Sponsor
Rep. Brownley, Julia [D-CA-26]
CA • D
Cosponsors
Rep. Schneider, Bradley Scott [D-IL-10]
IL • D
Sponsored 2/26/2025
Roll Call Votes
No roll call votes available for this bill.
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