Today: April 14, 2024
Today: April 14, 2024

Biden administration to release aviation fuel subsidy guidance by year's end-Agriculture Secretary

Share This
LA Post: Biden administration to release aviation fuel subsidy guidance by year's end-Agriculture Secretary
Reuters
Leah Douglas
November 30, 2023

By Leah Douglas

WASHINGTON (Reuters) - U.S. Agriculture Secretary Tom Vilsack said on Wednesday he was confident the Treasury Department would release guidance by the end of the year that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies.

The Biden administration has been divided over this issue for months, as it faces a strong lobbying push from stakeholders in the U.S. Farm Belt that see sustainable aviation fuel (SAF) as one of the only routes to grow the ethanol industry.

Environmental groups say clearing land to grow crops for fuel is counterproductive to curbing global warming, while the ethanol industry argues that the U.S. needs to use ready technology to quickly reduce carbon dioxide emissions.

Reuters reported in September that the Biden administration would likely delay a decision until December. The guidance was expected in September.

"You can be confident you'll see something coming from Treasury, I would anticipate and hope, by the end of the year," Vilsack said in a conversation with Reuters reporters. "They will provide some direction and guidance, and I think the actual rules and regulations and so forth may take a little bit longer."

When asked if he was confident that ethanol will become an SAF feedstock, Vilsack said he was.

The billions of dollars of subsidies the ethanol industry hopes to have access to are part of last year's Inflation Reduction Act (IRA), President Joe Biden's signature climate law. SAF producers seeking tax credits must demonstrate with an approved scientific model that their fuel generates 50% less greenhouse gas emissions over its lifecycle than petroleum fuel.

Midwest ethanol producers have asked the administration to adopt the Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET), which would enable ethanol-based SAF to qualify, while environmentalists want standards that would favor inputs like used cooking oil and animal fat.

Vilsack also said that updates to GREET underway at USDA primarily deal with how the model calculates emissions from tilling land to grow crops.

(Reporting by Leah Douglas in Washington; writing by Leah Douglas and Stephanie Kelly in New York)

Popular

Iowa star Caitlin Clark makes surprise appearance on 'Saturday Night Live'

Caitlin Clark made a surprise appearance on “Saturday Night Live” during the show’s “Weekend Update” segment

News organizations urge Biden and Trump to commit to presidential debates during the 2024 campaign

Twelve news organizations have issued a joint statement calling on presumptive presidential nominees Joe Biden and Donald Trump to agree to debates during the White House campaign

Pereira retains light heavyweight title with 1st-round KO of Hill at UFC 300

Light heavyweight champion Alex Pereira knocked out top-ranked challenger Jamahal Hill at 3:14 of the first round in UFC 300

Lionel Messi scores fifth goal and has an assist in Inter Miami's 3-2 win over Sporting KC

Lionel Messi scored his fifth goal and added an assist and Luis Suárez tapped in the winner in the 71st minute as Inter Miami CF topped Sporting Kansas City 3-2 in front of the third-largest crowd in MLS history

Related

How to get rid of NYC rats without brutality? Birth control is one idea

It's almost April 15. Here's how to reduce stress and get your taxes done

Bird flu is spreading to more farm animals. Are milk and eggs safe?

Philippine deals with US, Japan will not affect China's investments, Marcos says

- Advertisement -
Advertisement: Limited Time Offer