[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1594 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1594
To support the sustainable aviation fuel market, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2025
Ms. Brownley (for herself and Mr. Schneider) introduced the following
bill; which was referred to the Committee on Energy and Commerce, and
in addition to the Committees on Transportation and Infrastructure,
Armed Services, Science, Space, and Technology, and Ways and Means, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To support the sustainable aviation fuel market, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sustainable Aviation Fuel Act''.
SEC. 2. NATIONAL GOAL.
It is hereby declared that it is the national goal for the United
States to reach--
(1) a net 35-percent reduction in greenhouse gas emissions
for United States domestic and international aviation flights
by 2035, as compared to 2005; and
(2) net zero greenhouse gas emissions for United States
domestic and international aviation flights by 2050.
SEC. 3. DEFINITIONS.
In this Act:
(1) Sustainable aviation fuel.--The term ``sustainable
aviation fuel'' has the meaning given such term in section 40B
of the Internal Revenue Code of 1986.
(2) Qualified feedstock.--The term ``qualified feedstock''
means sources of hydrogen and carbon not originating from
unrefined or refined petrochemicals.
(3) Lifecycle greenhouse gas emissions.--The term
``lifecycle greenhouse gas emissions'' means the combined
greenhouse gas emissions from feedstock production, collection
of feedstock, transportation of feedstock to fuel production
facilities, conversion of feedstock to fuel, transportation and
distribution of fuel, and fuel combustion in an aircraft
engine, as well as from induced land-use change emissions, as
calculated using appropriate modeling techniques approved by a
regulating authority.
(4) Induced land-use change emissions.--The term ``induced
land-use change emissions'' means the greenhouse gas emissions
resulting from the conversion of land to the production of
feedstocks and from the conversion of other land due to the
displacement of crops or animals for which the original land
was previously used, as calculated using appropriate modeling
techniques approved by a regulating authority.
(5) Conventional jet fuel.--The term ``conventional jet
fuel'' means liquid hydrocarbon fuel used for aviation that is
derived or refined from petrochemicals.
SEC. 4. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM.
Section 40007 of the Inflation Reduction Act (49 U.S.C. 44504 note)
is amended by adding at the end the following:
``(f) Additional Projects.--For purposes of continuing the
competitive grant program established under subsection (a) for eligible
entities to carry out projects located in the United States that
produce, transport, blend, or store sustainable aviation fuel, or
develop, demonstrate, or apply low- emission aviation technologies, in
addition to amounts otherwise available, there are authorized to be
appropriated to the Secretary for each of fiscal years 2026 through
2030, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2030, $200,000,000 for the
purposes described in subsection (a).''.
SEC. 5. LOW CARBON AVIATION FUEL STANDARD.
(a) Establishment of Low Carbon Aviation Fuel Standard.--Section
211 of the Clean Air Act (42 U.S.C. 7545) is amended by adding at the
end the following:
``(w) Low Carbon Aviation Fuel Standard.--
``(1) Definitions.--In this subsection:
``(A) Aviation fuel.--The term `aviation fuel'
means fuel that is produced, sold, or dispensed in the
United States, for civil or military purposes, for
turbine-powered aviation.
``(B) Carbon intensity.--The term `carbon
intensity' means the quantity of lifecycle greenhouse
gas emissions per unit of fuel energy.
``(C) Credit exchange.--The term `credit exchange'
means a central marketplace with established rules and
regulations where buyers and sellers meet to conduct
trades.
``(D) Fuel standard.--The term `fuel standard'
means the low carbon fuel standard established under
paragraph (2).
``(2) Establishment.--Not later than 1 year after the date
of enactment of this subsection, the Administrator shall
promulgate regulations to establish a low carbon fuel standard
for aviation fuels that requires a reduction in carbon
intensity for aviation fuels each calendar year such that by
2050, and thereafter, the average carbon intensity of all
aviation fuel used annually in the United States is reduced by
at least 50 percent, as compared to the average carbon
intensity of all aviation fuel used in the United States in
2005.
``(3) Targets.--In promulgating regulations under paragraph
(2), the Administrator shall set a target of a reduction of at
least 20 percent in the average carbon intensity of all
aviation fuel used annually in the United States by 2030, and
of at least 50 percent by 2050, as compared to the average
carbon intensity of all aviation fuel used in the United States
in 2005.
``(4) Requirements.--In promulgating regulations under
paragraph (2), the Administrator shall--
``(A) establish a benchmark for the average carbon
intensity of aviation fuels for each calendar year,
beginning with the first full calendar year that begins
2 years after the date of enactment of this subsection,
suitable to achieving the targets specified in
paragraph (3);
``(B) apply the fuel standard to persons who
produce or import aviation fuel;
``(C) establish procedures for calculating the
carbon intensity of an aviation fuel, expressed in
grams of carbon dioxide equivalent per megajoule, in
accordance with--
``(i) the standards, recommended practices,
requirements and criteria, supporting
documents, implementation elements, and any
other technical guidance for sustainable
aviation fuels that are adopted by the
International Civil Aviation Organization with
the agreement of the United States; and
``(ii) any other more stringent accounting
practices determined by the Administrator to be
the best lifecycle greenhouse gas emission
accounting practices, provided that such
practices account for the aggregate quantity of
greenhouse gas emissions (including direct
emissions and significant indirect emissions
such as significant emissions from land use
changes), as determined by the Administrator,
related to the full fuel lifecycle, including
all stages of fuel and feedstock production and
distribution, from feedstock generation or
extraction through the distribution and
delivery and use of the finished fuel to the
ultimate consumer, where the mass values for
all greenhouse gases are adjusted to account
for their relative global warming potential;
``(D) determine how long the calculation of the
carbon intensity of an aviation fuel (pursuant to the
procedures established under subparagraph (C)), will
remain in effect before needing to be reevaluated;
``(E) allow a person described in subparagraph (B),
who, for a calendar year, produces or imports aviation
fuel--
``(i) that has an average carbon intensity
that is less than the benchmark for average
carbon intensity for that calendar year to,
except as provided in paragraph (8), generate
credits, to be used, or transferred to another
person, to demonstrate compliance with this
subsection; and
``(ii) that has an average carbon intensity
that is greater than the benchmark for average
carbon intensity for that calendar year to
purchase credits to be used to demonstrate
compliance with this subsection;
``(F) determine the--
``(i) appropriate amount of credits
generated and used to demonstrate compliance
pursuant to subparagraph (E);
``(ii) appropriate conditions, if any, on--
``(I) the duration of such credits;
and
``(II) the transfer of such credits
through a credit exchange; and
``(G) consult with all relevant stakeholders,
including aviation industry groups, renewable fuel
industry groups, researchers at institutions of higher
education, labor unions, consumer advocates, and any
other stakeholders the Administrator determines to be
appropriate.
``(5) Consultation.--In carrying out this subsection, the
Administrator shall consult with the Administrator of the
Federal Aviation Administration, the Secretary of Energy, and
the Secretary of Agriculture.
``(6) Coordination with states.--The Administrator shall,
after notice and opportunity for public hearing, waive
application of the fuel standard in any State that has adopted
a standard for aviation fuels that the Administrator determines
is at least as stringent as the fuel standard.
``(7) Revision.--If Congress enacts a standard or similar
law that the Administrator, in consultation with the
Administrator of the Federal Aviation Administration,
determines accomplishes the purposes of the fuel standard for
sectors of the economy that include the aviation sector, the
Administrator may revoke the fuel standard in favor of the
other standard or law.
``(8) Relationship to renewable fuel program.--No credit
may be generated under this subsection with respect to
renewable fuel for which a credit is generated under subsection
(o).
``(9) Report.--Not later than 180 days after the date of
enactment of this subsection, the Administrator shall submit to
Congress and make publicly available a report describing--
``(A) the status of the development of the fuel
standard; and
``(B) the considerations the Administrator is using
in developing the fuel standard.''.
(b) Enforcement.--Section 211(d) of the Clean Air Act (42 U.S.C.
7545(d)) is amended--
(1) in paragraph (1)--
(A) by striking ``or (o) of this section or the
regulations'' and inserting ``(o), or (w) of this
section or the regulations'';
(B) by striking ``or (o) of this section or who
fails'' and inserting ``(o), or (w) of this section or
who fails''; and
(C) by striking ``or (o) of this section which
establishes'' and inserting ``(o), or (w) of this
section which establishes''; and
(2) in paragraph (2), by striking ``and (o) of this
section'' each place it appears and inserting ``(o), and (w) of
this section''.
SEC. 6. PROCUREMENT OF SUSTAINABLE AVIATION FUEL BY THE DEPARTMENT OF
DEFENSE.
(a) In General.--Effective October 1, 2025, the Secretary of
Defense shall make a bulk purchase of an amount of sustainable aviation
fuel that is not less than 10 percent of the total amount of aviation
fuel procured for operational purposes (as defined in section 2922h of
title 10, United States Code) if--
(1) the cost of sustainable aviation fuel is competitive
with the fully burdened cost of conventional jet fuel available
for the same purpose; and
(2) the sustainable aviation fuel is refined or produced in
the United States.
(b) Blended Fuel.--If the Secretary of Defense purchases
sustainable aviation fuel that is blended with conventional jet fuel,
the percentage of sustainable aviation fuel in such blend will be
counted towards the percentage described in subsection (a).
(c) Certification.--Before making a purchase under subsection (a),
the Secretary of Defense or the Secretary concerned (as defined in
section 101(a)(9) of title 10, United States Code) shall certify that
the sustainable aviation fuel is suitable for use in aircrafts of the
Department of Defense.
(d) Waiver.--
(1) In general.--Subject to the requirements of paragraph
(2), the Secretary of Defense may waive the requirement under
subsection (a) for reasons of national security, including the
lack of available, qualifying sustainable aviation fuel.
(2) Notice.--Not later than 30 days after issuing a waiver
under this subsection, the Secretary shall submit to the
congressional defense committees (as defined in section
101(a)(16) of title 10, United States Code) notice of the
waiver. Any such notice shall include each of the following:
(A) The rationale of the Secretary for issuing the
waiver.
(B) A certification that the waiver is in the
national security interest of the United States.
(e) Definitions.--The terms ``fully burdened cost'' and
``operational purposes'' have the meanings given such terms,
respectively, in section 2922h of title 10, United States Code.
SEC. 7. FEDERAL AVIATION ADMINISTRATION RESEARCH.
(a) In General.--Section 911(a) of the FAA Modernization and Reform
Act of 2012 (49 U.S.C. 44504 note) is amended--
(1) by striking ``assist in the development'' and inserting
the following:
``(1) assist in the development'';
(2) by striking ``and other'' and inserting ``, other'';
(3) by striking the period and inserting ``, and
sustainable fuel that can be used without the need to blend
with any other type of aviation fuel;''; and
(4) by adding at the end the following:
``(2) promote the efforts of the aviation sector to become
a net-zero greenhouse gas emitting sector;
``(3) study the climate impacts of non-carbon dioxide
greenhouse gas emissions, water vapor, and contrails and ways
to minimize such impacts; and
``(4) develop a methodology for quantifying the non-carbon
dioxide climate impacts of aviation in a lifecycle analysis,
including the benefits of sustainable aviation fuel other than
the reduction in carbon dioxide emissions.''.
(b) Definitions.--Section 911 of such Act is amended by adding at
the end the following:
``(e) Definitions.--In this section:
``(1) Sustainable aviation fuel.--The term `sustainable
aviation fuel' means liquid fuel consisting of synthesized
hydrocarbons that--
``(A) is derived from a qualified feedstock; and
``(B) conforms to the standards, recommended
practices, requirements and criteria, supporting
documents, implementation elements, and any other
technical guidance for sustainable aviation fuels that
are adopted by the International Civil Aviation
Organization with the agreement of the United States.
``(2) Qualified feedstock.--The term `qualified feedstock'
means sources of hydrogen and carbon not originating from
unrefined or refined petrochemicals.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator of the Federal Aviation
Administration $35,000,000 for each of fiscal years 2026 through 2030
to carry out this section.''.
SEC. 8. DEPARTMENT OF ENERGY RESEARCH.
(a) In General.--The Secretary of Energy shall carry out a program
to research the use of cover crops or other crops grown for
conservation purposes rather than for sale in the production of
sustainable aviation fuel.
(b) Collaboration.--In carrying out the program under subsection
(a), the Secretary shall collaborate with the national laboratories,
the Department of Agriculture, and industry partners.
(c) Definitions.--In this section:
(1) Sustainable aviation fuel.--The term ``sustainable
aviation fuel'' means liquid fuel consisting of synthesized
hydrocarbons that--
(A) is derived from a qualified feedstock; and
(B) conforms to the standards, recommended
practices, requirements and criteria, supporting
documents, implementation elements, and any other
technical guidance for sustainable aviation fuels that
are adopted by the International Civil Aviation
Organization with the agreement of the United States.
(2) National laboratory.--The term ``national laboratory''
has the meaning given the term in section 2(3) of the Energy
Policy Act of 2005 (42 U.S.C. 15801(3)).
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 9. EXTENSION OF CLEAN FUEL PRODUCTION CREDIT FOR SUSTAINABLE
AVIATION FUEL.
(a) In General.--Section 45Z(g) of the Internal Revenue Code of
1986 is amended to read as follows:
``(g) Termination.--This section shall not apply--
``(1) in the case of transportation fuel which is not
sustainable aviation fuel, to fuel sold after December 31,
2027, and
``(2) in the case of sustainable aviation fuel, to fuel
sold after December 31, 2032.''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2027.
SEC. 10. SUSTAINABLE AVIATION FUEL PRODUCTION PROPERTY ADDED TO ENERGY
CREDIT.
(a) In General.--Section 48 of the Internal Revenue Code of 1986 is
amended--
(1) in subsection (a)--
(A) in paragraph (2)(A)(i)--
(i) in subclause (VIII), by striking
``and'', and
(ii) by adding at the end the following new
subclause:
``(X) sustainable aviation fuel
production property, and'',
(B) in paragraph (3)(A), by striking ``or'' at the
end of clause (x), inserting ``or'' at the end of
clause (xi), and by adding at the end the following new
clause:
``(xii) sustainable aviation fuel
production property,'', and
(C) by redesignating paragraph (16) as paragraph
(17) and by inserting after paragraph (15) the
following new paragraph:
``(16) Phaseout for sustainable aviation fuel production
property.--In the case of any energy property described in
paragraph (3)(A)(xii) the construction of which begins before
January 1, 2039, the energy percentage determined under
paragraph (2) shall be equal to--
``(A) in the case of any property the construction
of which begins after December 31, 2030, and before
January 1, 2032, 24 percent,
``(B) in the case of any property the construction
of which begins after December 31, 2031, and before
January 1, 2033, 18 percent, and
``(C) in the case of any property the construction
of which begins after December 31, 2032, and before
January 1, 2039, 12 percent.'', and
(2) in subsection (c), by adding at the end the following
new paragraph:
``(9) Sustainable aviation fuel production property.--
``(A) In general.--The term `sustainable aviation
fuel production property' means--
``(i) property which produces sustainable
aviation fuel (as defined in section 40B(d)),
or
``(ii) property directly related to
enabling the production or distribution of
sustainable aviation fuel.
``(B) Recapture of credit.--The Secretary shall, by
regulations, provide for recapturing the benefit of any
credit allowable under subsection (a)(3)(A)(xii) with
respect to any sustainable aviation fuel production
property if the sustainable aviation fuel production of
such property comprises less than 80 percent of the
total fuel production of such property in any of the 5
taxable years immediately following the taxable year in
which such property was placed in service.''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2025.
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