Minnesota ag commissioner urges adoption of GREET for SAF tax credit
In North Dakota, Biomass Magazine reported that Minnesota Department of Agriculture Commissioner Thom Petersen is encouraging the federal government to allow the U.S. Department of Energy’s GREET model to be used to calculate greenhouse gas (GHG) reductions for the purposes of the sustainable aviation fuel tax credit.
The SAF tax credit, created by the Inflation Reduction Act, includes language specifying that the GHG reduction of the fuel is to be calculated with “the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization” or a similar methodology.
Petersen has joined numerous supporters of the U.S. biofuel industry in calling for the U.S. Department of Treasury to allow the GREET model to serve as an alternative model to CORSIA, according to the report.
“The Biden Administration is expected to finalize guidance on which method and accompanying model will be used to measure the carbon intensity of a sustainable aviation fuel (SAF) made from biomass – and whether a given fuel qualifies for the tax credit authorized in the Inflation Reduction Act,” Petersen wrote. “This decision regarding the carbon intensity method and model selected for eligibility will determine whether our farmers will be able to sell their products into the sustainable aviation market.
“The key question remains whether U.S. sustainable aviation fuel producers will be allowed to use a lifecycle greenhouse gas (GHG) emissions accounting methodology based on the well-established Argonne GREET model developed by the U.S. Department of Energy (DOE), which is used with standards for other biofuels, or whether producers can only use a policy framework approved by an international body (ICAO) under the CORSIA program,” he added.
Category: SAF
