HR1594-119

What This Bill Does

The Sustainable Aviation Fuel Act is a multi-part aviation decarbonization bill. It defines sustainable aviation fuel, qualified feedstocks, lifecycle greenhouse gas emissions, induced land-use change emissions, and conventional jet fuel. It authorizes $200 million per year from fiscal years 2026 through 2030 for the Alternative Fuel and Low-Emission Aviation Technology Program. EPA must establish a low-carbon aviation fuel standard that reduces average aviation-fuel carbon intensity at least 50 percent below the 2005 baseline by 2050, using credit trading and lifecycle accounting. DOD must buy sustainable aviation fuel equal to at least 10 percent of operational aviation fuel procurement when the SAF is domestically produced, suitable for military aircraft, and competitive with the fully burdened cost of conventional fuel. FAA and DOE receive research duties on drop-in SAF, non-CO2 climate impacts, contrails, cover crops, national laboratories, and industry collaboration. The bill also extends the section 45Z clean fuel production credit for SAF through 2032 and adds SAF production property to the section 48 energy credit with phased percentages through 2038.

Who Benefits and How

SAF manufacturers benefit from grants, DOD bulk purchases, extended clean-fuel credits, and energy-credit eligibility for production property. Airline workers benefit if the grant and credit structure expands domestic SAF supply and supports lower-emission aviation operations. Feedstock farmers benefit from DOE research on cover crops and conservation crops for SAF production. Aviation climate researchers benefit from FAA work on non-carbon dioxide impacts, water vapor, contrails, and lifecycle methodology. Defense aviation officers benefit from a domestic SAF procurement rule that includes suitability and cost-competitiveness safeguards.

Who Bears the Burden and How

The Environmental Protection Agency must create and administer a low-carbon aviation fuel standard, credit exchange, and annual carbon-intensity reductions. The Department of Defense must certify, procure, track, or waive sustainable aviation fuel purchases. Conventional fuel manufacturers face pressure from a carbon-intensity standard and expanded SAF incentives. Federal taxpayers bear grant, research, procurement, and tax-credit costs. Fuel compliance staff must account for lifecycle emissions, induced land-use change, feedstock qualification, and credit compliance.

Key Provisions

• Authorizes $200 million per year from fiscal years 2026 through 2030 for low-emission aviation grants.
• Requires EPA to establish a low-carbon aviation fuel standard reaching at least 50 percent carbon-intensity reduction by 2050.
• Directs DOD to buy at least 10 percent sustainable aviation fuel when domestic, suitable, and cost competitive.
• Expands FAA and DOE research on SAF feedstocks, contrails, non-CO2 impacts, and lifecycle analysis.
• Extends the section 45Z clean fuel production credit for SAF through 2032 and adds SAF production property to section 48.