I 

116TH CONGRESS 

2D SESSION H. R. 8769 

To support the sustainable aviation fuel market, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 18, 2020 

Ms. BROWNLEY of California 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sustainable Aviation 

5 Fuel Act’’. 

6 SEC. 2. NATIONAL GOAL. 

7 It is hereby declared that it is the national goal for 

8 the United States to reach— 


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1 (1) a net 35-percent reduction in greenhouse 

2 gas emissions for United States domestic and inter3 national aviation flights by 2035, as compared to 

4 2005; and 

5 (2) net zero greenhouse gas emissions for 

6 United States domestic and international aviation 

7 flights by 2050. 

8 SEC. 3. DEFINITIONS. 

9 In this Act: 

10 (1) SUSTAINABLE AVIATION FUEL.—The term 

11 ‘‘sustainable aviation fuel’’ means liquid fuel con12 sisting of synthesized hydrocarbons that— 

13 (A) meets the requirements of a Depart14 ment of Defense specification for military jet 

15 fuel or an American Society of Testing and Ma16 terials specification for aviation turbine fuel; 

17 (B) is derived from qualified feedstock; 

18 (C) is certified by the Environmental Pro19 tection Agency Administrator that such fuel— 

20 (i) either— 

21 (I) conforms to the standards, 

22 recommended practices, requirements 

23 and criteria, supporting documents, 

24 implementation elements, and any 

25 other technical guidance for sustainVerDate Sep 11 2014 23:12 Nov 29, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8769.IH H8769

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1 able aviation fuels that are adopted by 

2 the International Civil Aviation Orga3 nization with the agreement of the 

4 United States; or 

5 (II) meets the definition of ‘‘ad6 vanced biofuel’’ under section 

7 211(o)(1) of the Clean Air Act (42 

8 U.S.C. 7545(o)(1)), as demonstrated 

9 by compliance with Environmental 

10 Protection Agency implementing regu11 lations under subpart M of part 80 of 

12 title 40, Code of Federal Regulations; 

13 and 

14 (ii) achieves at least a 50-percent re15 duction in lifecycle greenhouse gas emis16 sions compared to conventional jet fuel. 

17 (2) QUALIFIED FEEDSTOCK.—The term ‘‘quali18 fied feedstock’’ means sources of hydrogen and car19 bon not originating from unrefined or refined petro20 chemicals. 

21 (3) LIFECYCLE GREENHOUSE GAS EMIS22 SIONS.—The term ‘‘lifecycle greenhouse gas emis23 sions’’ means the combined greenhouse gas emis24 sions from feedstock production, collection of feed25 stock, transportation of feedstock to fuel production 


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1 facilities, conversion of feedstock to fuel, transpor2 tation and distribution of fuel, and fuel combustion 

3 in an aircraft engine, as well as from induced land4 use change emissions, as calculated using appro5 priate modeling techniques approved by a regulating 

6 authority. 

7 (4) INDUCED LAND-USE CHANGE EMISSIONS.— 

8 The term ‘‘induced land-use change emissions’’ 

9 means the greenhouse gas emissions resulting from 

10 the conversion of land to the production of feed11 stocks and from the conversion of other land due to 

12 the displacement of crops or animals for which the 

13 original land was previously used, as calculated 

14 using appropriate modeling techniques approved by 

15 a regulating authority. 

16 (5) CONVENTIONAL JET FUEL.—The term 

17 ‘‘conventional jet fuel’’ means liquid hydrocarbon 

18 fuel used for aviation that is derived or refined from 

19 petrochemicals. 

20 SEC. 4. GRANT PROGRAM. 

21 (a) IN GENERAL.—The Secretary of Transportation, 

22 in consultation with the Administrator of the Environ23 mental Protection Agency, shall carry out a competitive 

24 grant and cost-sharing agreement program for eligible en25 tities to carry out projects located in the United States 


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1 to produce, transport, blend, or store sustainable aviation 

2 fuel. 

3 (b) SELECTION.—In selecting an eligible entity to re4 ceive a grant or cost-share agreement under subsection 

5 (a), the Secretary shall consider— 

6 (1) the anticipated public benefits of a project 

7 proposed by the eligible entity; 

8 (2) the potential to increase the domestic pro9 duction and deployment of sustainable aviation fuel; 

10 (3) the potential greenhouse gas emissions from 

11 such project; 

12 (4) the potential for creating new jobs in the 

13 United States; 

14 (5) the potential net greenhouse gas emissions 

15 impact of different feedstocks to produce sustainable 

16 aviation fuel on a lifecycle basis, which shall include 

17 potential direct and indirect greenhouse gas emis18 sions (including resulting from changes in land use); 

19 and 

20 (6) the proposed utilization of non-Federal con21 tributions by the eligible entity. 

22 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated $200,000,000 for each of 

24 fiscal years 2021 through 2025 to carry out this section. 


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1 (d) REPORT.—Not later than October 1, 2026, the 

2 Secretary shall submit to the Committee on Commerce, 

3 Science, and Transportation and the Committee on Envi4 ronment and Public Works of the Senate and the Com5 mittee on Transportation and Infrastructure and the 

6 Committee on Energy and Commerce of the House of 

7 Representatives a report describing the results of the 

8 grant program under this section. The report shall include 

9 the following: 

10 (1) A description of the entities and projects 

11 that received grants or other cost-sharing agree12 ments under this section. 

13 (2) A detailed explanation for why each entity 

14 received the type of funding disbursement such enti15 ty did. 

16 (3) A description of whether the program is 

17 leading to an increase in the production and deploy18 ment of sustainable aviation fuels and whether that 

19 increase is enough to keep the United States on 

20 track to achieve the goals described in section 2 of 

21 this Act. 

22 (4) A description of the economic impacts re23 sulting from the funding to and operation of the 

24 project. 


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1 (e) ELIGIBLE ENTITY DEFINED.—In this section, the 

2 term ‘‘eligible entity’’ means— 

3 (1) a State or local government other than an 

4 airport sponsor; 

5 (2) an air carrier; 

6 (3) an airport sponsor; and 

7 (4) a person or entity engaged in the produc8 tion, transportation, blending or storage of sustain9 able aviation fuel in the United States or feedstocks 

10 in the United States that could be used to produce 

11 sustainable aviation fuel. 

12 SEC. 5. LOW CARBON AVIATION FUEL STANDARD. 

13 (a) ESTABLISHMENT OF LOW CARBON AVIATION

14 FUEL STANDARD.—Section 211 of the Clean Air Act (42 

15 U.S.C. 7545) is amended by adding at the end the fol16 lowing: 

17 ‘‘(w) LOW CARBON AVIATION FUEL STANDARD.— 

18 ‘‘(1) DEFINITIONS.—In this subsection: 

19 ‘‘(A) AVIATION FUEL.—The term ‘aviation 

20 fuel’ means fuel that is produced, sold, or dis21 pensed in the United States, for civil or military 

22 purposes, for turbine-powered aviation. 

23 ‘‘(B) CARBON INTENSITY.—The term ‘car24 bon intensity’ means the quantity of lifecycle 


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1 greenhouse gas emissions per unit of fuel en2 ergy. 

3 ‘‘(C) CREDIT EXCHANGE.—The term ‘cred4 it exchange’ means a central marketplace with 

5 established rules and regulations where buyers 

6 and sellers meet to conduct trades. 

7 ‘‘(D) FUEL STANDARD.—The term ‘fuel 

8 standard’ means the low carbon fuel standard 

9 established under paragraph (2). 

10 ‘‘(2) ESTABLISHMENT.—Not later than 1 year 

11 after the date of enactment of this subsection, the 

12 Administrator shall promulgate regulations to estab13 lish a low carbon fuel standard for aviation fuels 

14 that requires a reduction in carbon intensity for 

15 aviation fuels each calendar year such that by 2050, 

16 and thereafter, the average carbon intensity of all 

17 aviation fuel used annually in the United States is 

18 reduced by at least 50 percent, as compared to the 

19 average carbon intensity of all aviation fuel used in 

20 the United States in 2005. 

21 ‘‘(3) TARGETS.—In promulgating regulations 

22 under paragraph (2), the Administrator shall set a 

23 target of a reduction of at least 20 percent in the 

24 average carbon intensity of all aviation fuel used an25 nually in the United States by 2030, and of at least 


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1 50 percent by 2050, as compared to the average car2 bon intensity of all aviation fuel used in the United 

3 States in 2005. 

4 ‘‘(4) REQUIREMENTS.—In promulgating regula5 tions under paragraph (2), the Administrator 

6 shall— 

7 ‘‘(A) establish a benchmark for the average 

8 carbon intensity of aviation fuels for each cal9 endar year, beginning with the first full cal10 endar year that begins 2 years after the date of 

11 enactment of this subsection, suitable to achiev12 ing the targets specified in paragraph (3); 

13 ‘‘(B) apply the fuel standard to persons 

14 who produce or import aviation fuel; 

15 ‘‘(C) establish procedures for calculating 

16 the carbon intensity of an aviation fuel, ex17 pressed in grams of carbon dioxide equivalent 

18 per megajoule, in accordance with— 

19 ‘‘(i) the standards, recommended 

20 practices, requirements and criteria, sup21 porting documents, implementation ele22 ments, and any other technical guidance 

23 for sustainable aviation fuels that are 

24 adopted by the International Civil Aviation 


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1 Organization with the agreement of the 

2 United States; and 

3 ‘‘(ii) any other more stringent ac4 counting practices determined by the Ad5 ministrator to be the best lifecycle green6 house gas emission accounting practices, 

7 provided that such practices account for 

8 the aggregate quantity of greenhouse gas 

9 emissions (including direct emissions and 

10 significant indirect emissions such as sig11 nificant emissions from land use changes), 

12 as determined by the Administrator, re13 lated to the full fuel lifecycle, including all 

14 stages of fuel and feedstock production and 

15 distribution, from feedstock generation or 

16 extraction through the distribution and de17 livery and use of the finished fuel to the 

18 ultimate consumer, where the mass values 

19 for all greenhouse gases are adjusted to ac20 count for their relative global warming po21 tential; 

22 ‘‘(D) determine how long the calculation of 

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1 paragraph (C)), will remain in effect before 

2 needing to be reevaluated; 

3 ‘‘(E) allow a person described in subpara4 graph (B), who, for a calendar year, produces 

5 or imports aviation fuel— 

6 ‘‘(i) that has an average carbon inten7 sity that is less than the benchmark for av8 erage carbon intensity for that calendar 

9 year to, except as provided in paragraph 

10 (8), generate credits, to be used, or trans11 ferred to another person, to demonstrate 

12 compliance with this subsection; and 

13 ‘‘(ii) that has an average carbon in14 tensity that is greater than the benchmark 

15 for average carbon intensity for that cal16 endar year to purchase credits to be used 

17 to demonstrate compliance with this sub18 section; 

19 ‘‘(F) determine the— 

20 ‘‘(i) appropriate amount of credits 

21 generated and used to demonstrate compli22 ance pursuant to subparagraph (E); 

23 ‘‘(ii) appropriate conditions, if any, 

24 on— 


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1 ‘‘(I) the duration of such credits; 

2 and 

3 ‘‘(II) the transfer such credits 

4 through a credit exchange; and 

5 ‘‘(G) consult with all relevant stakeholders, 

6 including aviation industry groups, renewable 

7 fuel industry groups, researchers at institutions 

8 of higher education, labor unions, consumer ad9 vocates, and any other stakeholders the Admin10 istrator determines to be appropriate. 

11 ‘‘(5) CONSULTATION.—In carrying out this sub12 section, the Administrator shall consult with the Ad13 ministrator of the Federal Aviation Administration, 

14 the Secretary of Energy, and the Secretary of Agri15 culture. 

16 ‘‘(6) COORDINATION WITH STATES.—The Ad17 ministrator shall, after notice and opportunity for 

18 public hearing, waive application of the fuel stand19 ard in any State that has adopted a standard for 

20 aviation fuels that the Administrator determines is 

21 at least as stringent as the fuel standard. 

22 ‘‘(7) REVISION.—If Congress enacts a standard 

23 or similar law that the Administrator, in consulta24 tion with the Administrator of the Federal Aviation 

25 Administration, determines accomplishes the purVerDate Sep 11 2014 23:12 Nov 29, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H8769.IH H8769

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1 poses of the fuel standard for sectors of the economy 

2 that include the aviation sector, the Administrator 

3 may revoke the fuel standard in favor of the other 

4 standard or law. 

5 ‘‘(8) RELATIONSHIP TO RENEWABLE FUEL PRO6 GRAM.—No credit may be generated under this sub7 section with respect to renewable fuel for which a 

8 credit is generated under subsection (o). 

9 ‘‘(9) REPORT.—Not later than 180 days after 

10 the date of enactment of this subsection, the Admin11 istrator shall submit to Congress and make publicly 

12 available a report describing— 

13 ‘‘(A) the status of the development of the 

14 fuel standard; and 

15 ‘‘(B) the considerations the Administrator 

16 is using in developing the fuel standard.’’. 

17 (b) ENFORCEMENT.—Section 211(d) of the Clean Air 

18 Act (42 U.S.C. 7545(d)) is amended— 

19 (1) in paragraph (1)— 

20 (A) by striking ‘‘or (o) of this section or 

21 the regulations’’ and inserting ‘‘(o), or (w) of 

22 this section or the regulations’’; 

23 (B) by striking ‘‘or (o) of this section or 

24 who fails’’ and inserting ‘‘(o), or (w) of this sec25 tion or who fails’’; and 


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1 (C) by striking ‘‘or (o) of this section 

2 which establishes’’ and inserting ‘‘(o), or (w) of 

3 this section which establishes’’; and 

4 (2) in paragraph (2), by striking ‘‘and (o) of 

5 this section’’ each place it appears and inserting 

6 ‘‘(o), and (w) of this section’’. 

7 SEC. 6. PROCUREMENT OF SUSTAINABLE AVIATION FUEL 

8 BY THE DEPARTMENT OF DEFENSE. 

9 (a) IN GENERAL.—Effective October 1, 2023, the 

10 Secretary of Defense shall make a bulk purchase of an 

11 amount of sustainable aviation fuel that is not less than 

12 10 percent of the total amount of aviation fuel procured 

13 for operational purposes (as defined in section 2922h of 

14 title 10, United States Code) if— 

15 (1) the cost of sustainable aviation fuel is com16 petitive with the fully burdened cost of conventional 

17 jet fuel available for the same purpose; and 

18 (2) the sustainable aviation fuel is refined or 

19 produced in the United States. 

20 (b) BLENDED FUEL.—If the Secretary of Defense 

21 purchases sustainable aviation fuel that is blended with 

22 conventional jet fuel, the percentage of sustainable avia23 tion fuel in such blend will be counted towards the per24 centage described in subsection (a). 


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1 (c) CERTIFICATION.—Before making a purchase 

2 under subsection (a), the Secretary of Defense or the Sec3 retary concerned (as defined in section 101(a)(9) of title 

4 10, United States Code) shall certify that the sustainable 

5 aviation fuel is suitable for use in aircrafts of the Depart6 ment of Defense. 

7 (d) WAIVER.— 

8 (1) IN GENERAL.—Subject to the requirements 

9 of paragraph (2), the Secretary of Defense may 

10 waive the requirement under subsection (a) for rea11 sons of national security, including the lack of avail12 able, qualifying sustainable aviation fuel. 

13 (2) NOTICE.—Not later than 30 days after 

14 issuing a waiver under this subsection, the Secretary 

15 shall submit to the congressional defense committees 

16 (as defined in section 101(a)(16) of title 10, United 

17 States Code) notice of the waiver. Any such notice 

18 shall include each of the following: 

19 (A) The rationale of the Secretary for 

20 issuing the waiver. 

21 (B) A certification that the waiver is in the 

22 national security interest of the United States. 

23 (e) DEFINITIONS.—The terms ‘‘fully burdened cost’’ 

24 and ‘‘operational purposes’’ have the meanings given such 


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1 terms, respectively, in section 2922h of title 10, United 

2 States Code. 

3 SEC. 7. FEDERAL AVIATION ADMINISTRATION RESEARCH. 

4 (a) IN GENERAL.—Section 911(a) of the FAA Mod5 ernization and Reform Act of 2012 (49 U.S.C. 44504 

6 note) is amended— 

7 (1) by striking ‘‘assist in the development’’ and 

8 inserting the following: 

9 ‘‘(1) assist in the development’’; 

10 (2) by striking ‘‘and other’’ and inserting ‘‘, 

11 other’’; 

12 (3) by striking the period and inserting ‘‘, and 

13 sustainable fuel that can be used without the need 

14 to blend with any other type of aviation fuel;’’; 

15 (4) by adding at the end the following: 

16 ‘‘(2) promote the efforts of the aviation sector 

17 to become a net-zero greenhouse gas emitting sector; 

18 ‘‘(3) study the climate impacts of non-carbon 

19 dioxide greenhouse gas emissions, water vapor, and 

20 contrails and ways to minimize such impacts; and 

21 ‘‘(4) develop a methodology for quantifying the 

22 non-carbon dioxide climate impacts of aviation in a 

23 lifecycle analysis, including the benefits of sustain24 able aviation fuel other than the reduction in carbon 

25 dioxide emissions.’’. 


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1 (b) DEFINITIONS.—Section 911 of such Act is 

2 amended by adding at the end the following: 

3 ‘‘(e) DEFINITIONS.—In this section: 

4 ‘‘(1) SUSTAINABLE AVIATION FUEL.—The term 

5 ‘sustainable aviation fuel’ means liquid fuel con6 sisting of synthesized hydrocarbons that— 

7 ‘‘(A) is derived from a qualified feedstock; 

8 and 

9 ‘‘(B) conforms to the standards, rec10 ommended practices, requirements and criteria, 

11 supporting documents, implementation ele12 ments, and any other technical guidance for 

13 sustainable aviation fuels that are adopted by 

14 the International Civil Aviation Organization 

15 with the agreement of the United States. 

16 ‘‘(2) QUALIFIED FEEDSTOCK.—The term ‘quali17 fied feedstock’ means sources of hydrogen and car18 bon not originating from unrefined or refined petro19 chemicals. 

20 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

21 is authorized to be appropriated to the Administrator of 

22 the Federal Aviation Administration $35,000,000 for each 

23 of fiscal years 2021 through 2025 to carry out this sec24 tion.’’. 


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1 SEC. 8. DEPARTMENT OF ENERGY RESEARCH. 

2 (a) IN GENERAL.—The Secretary of Energy shall 

3 carry out a program to research the use of cover crops 

4 or other crops grown for conservation purposes rather 

5 than for sale in the production of sustainable aviation fuel. 

6 (b) COLLABORATION.—In carrying out the program 

7 under subsection (a), the Secretary shall collaborate with 

8 the national laboratories, the Department of Agriculture, 

9 and industry partners. 

10 (c) DEFINITIONS.—In this section: 

11 (1) SUSTAINABLE AVIATION FUEL.—The term 

12 ‘‘sustainable aviation fuel’’ means liquid fuel con13 sisting of synthesized hydrocarbons that— 

14 (A) is derived from a qualified feedstock; 

15 and 

16 (B) conforms to the standards, rec17 ommended practices, requirements and criteria, 

18 supporting documents, implementation ele19 ments, and any other technical guidance for 

20 sustainable aviation fuels that are adopted by 

21 the International Civil Aviation Organization 

22 with the agreement of the United States. 

23 (2) NATIONAL LABORATORY.—The term ‘‘na24 tional laboratory’’ has the meaning given the term in 

25 section 2(3) of the Energy Policy Act of 2005 (42 

26 U.S.C. 15801(3)). 


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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as may be 

3 necessary to carry out this section. 

4 SEC. 9. SUSTAINABLE AVIATION FUEL CREDIT. 

5 (a) IN GENERAL.—Subpart D of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by inserting after section 40A the fol8 lowing new section: 

9 ‘‘SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

11 sustainable aviation fuel credit for the taxable year is, with 

12 respect to each gallon of neat sustainable aviation fuel 

13 blending component used by the taxpayer in the produc14 tion of a qualified mixture— 

15 ‘‘(1) $1.50, plus 

16 ‘‘(2) the applicable supplementary credit 

17 amount. 

18 ‘‘(b) APPLICABLE SUPPLEMENTARY CREDIT

19 AMOUNT.— 

20 ‘‘(1) IN GENERAL.—For purposes of subsection 

21 (a), the applicable supplementary credit amount is 

22 $0.25, reduced (but not below zero) by the emissions 

23 reduction certification amount. 

24 ‘‘(2) EMISSIONS REDUCTION CERTIFICATION

25 AMOUNT.—For purposes of paragraph (1), the emisVerDate Sep 11 2014 23:12 Nov 29, 2020 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H8769.IH H8769

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1 sions reduction certification amount is $0.01 for 

2 every 2 percentage points below 100 percent for 

3 which the neat sustainable aviation fuel blending 

4 component is certified to reduce emissions in com5 parison with conventional fuel under section 10 of 

6 the Sustainable Aviation Fuel Act. 

7 ‘‘(c) NEAT SUSTAINABLE AVIATION FUEL BLENDING

8 COMPONENT.—For purposes of this section, the term 

9 ‘neat sustainable aviation fuel blending component’ means 

10 unblended liquid fuel— 

11 ‘‘(1) that consists of synthesized hydrocarbons, 

12 and 

13 ‘‘(2) that— 

14 ‘‘(A) meets the requirements of a Depart15 ment of Defense specification for military jet 

16 fuel or an American Society of Testing and Ma17 terials specification for aviation turbine fuel, 

18 ‘‘(B) is derived from qualified feedstock, 

19 and 

20 ‘‘(C) is certified by the Environmental Pro21 tection Agency to— 

22 ‘‘(i) either— 

23 ‘‘(I) comply with such standards 

24 of the International Civil Aviation Or25 ganization for sustainable aviation 


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1 fuels as have been adopted by the 

2 United States, or 

3 ‘‘(II) meet the definition of ad4 vanced biofuel under section 

5 211(o)(1)(B) of the Clean Air Act (42 

6 U.S.C. 7545(o)(1)(B)), and 

7 ‘‘(ii) achieve at least a 50-percent re8 duction in lifecycle greenhouse gas emis9 sions in comparison with conventional jet 

10 fuel. 

11 ‘‘(d) QUALIFIED MIXTURE.—For purposes of this 

12 section, the term ‘qualified mixture’ means a mixture of 

13 neat sustainable aviation fuel blending component and 

14 kerosene, which— 

15 ‘‘(1) is used by the taxpayer as aircraft fuel in 

16 a trade or business, or 

17 ‘‘(2) is sold by the taxpayer to any person for 

18 use as aircraft fuel. 

19 ‘‘(e) DEFINITIONS.—For purposes of this section, the 

20 terms ‘qualified feedstock’, ‘lifecycle greenhouse gas emis21 sions’, and ‘induced land-use change emissions’ have the 

22 meanings given such terms in section 3 of the Sustainable 

23 Aviation Fuel Act. 

24 ‘‘(f) SALE OR USE MUST BE IN TRADE OR BUSI25 NESS, ETC.—Neat sustainable aviation fuel blending comVerDate Sep 11 2014 23:12 Nov 29, 2020 Jkt 019200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H8769.IH H8769

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1 ponent used in the production of a qualified mixture shall 

2 be taken into account— 

3 ‘‘(1) only if the sale or use described in sub4 section (d) is in a trade or business of the taxpayer 

5 or other person, and 

6 ‘‘(2) for the taxable year in which such sale or 

7 use occurs. 

8 ‘‘(g) APPLICATION OF SECTION.—This section shall 

9 only apply to fuel produced before January 1, 2031.’’. 

10 (b) CREDIT MADE PART OF GENERAL BUSINESS

11 CREDIT.—Section 38(b) (relating to current year business 

12 credit) is amended by striking ‘‘plus’’ at the end of para13 graph (32), by striking the period at the end of paragraph 

14 (33) and inserting ‘‘, plus’’, and by inserting after para15 graph (33) the following new paragraph: 

16 ‘‘(34) the sustainable aviation fuel credit deter17 mined under section 40B.’’. 

18 (c) CONFORMING AMENDMENT.—Section 40A(f) of 

19 such Code is amended by striking paragraph (4). 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to fuel produced after December 

22 31, 2020. 


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1 SEC. 10. EPA CERTIFICATION OF NEAT SUSTAINABLE AVIA2 TION FUEL BLENDING COMPONENT. 

3 (a) IN GENERAL.—Not later than 180 days after the 

4 date of enactment of this Act, the Administrator of the 

5 Environmental Protection Agency shall promulgate regu6 lations, for purposes of section 40B of the Internal Rev7 enue Code of 1986, to certify— 

8 (1) whether a liquid fuel produced by a fuel 

9 producer qualifies as a neat sustainable aviation fuel 

10 blending component under subsection (c)(2)(C) of 

11 such section; and 

12 (2) the percent reduction of greenhouse gas 

13 emissions from a gallon of neat sustainable aviation 

14 fuel blending component produced by a fuel producer 

15 in comparison to the greenhouse gas emissions from 

16 a gallon of conventional jet fuel. 

17 (b) CONSIDERATIONS AND INCLUSIONS.—In promul18 gating regulations under subsection (a), the Administrator 

19 of the Environmental Protection Agency shall— 

20 (1) establish procedures for fuel producers to 

21 apply to, and receive from, the Environmental Pro22 tection Agency— 

23 (A) a certification, with respect to liquid 

24 fuel produced by such fuel producer, that such 

25 fuel qualifies as a neat sustainable aviation fuel 


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1 blending component under section 40B(c)(2)(C) 

2 of the Internal Revenue Code of 1986; and 

3 (B) if the fuel described in (A) so qualifies, 

4 a certification of the percent reduction of green5 house gas emissions from a gallon of such fuel 

6 in comparison to the greenhouse gas emissions 

7 from a gallon of conventional jet fuel; 

8 (2) determine methods for calculating green9 house gas emissions from a gallon of conventional 

10 jet fuel, and for reviewing and updating such cal11 culations every three years; 

12 (3) for purposes of calculating the greenhouse 

13 gas emissions from a liquid fuel that does or may 

14 qualify as a neat sustainable aviation fuel blending 

15 component, determine whether to use— 

16 (A) the Sustainability Certification 

17 Schemes approved by the International Civil 

18 Aviation Organization with agreement by the 

19 United States; or 

20 (B) other methods that take into account 

21 lifecycle greenhouse gas emissions from the ap22 plicable fuel pathway; 

23 (4) require different certifications for each fuel 

24 pathway used by a fuel producer; 


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1 (5) determine how long a certification under 

2 subsection (a)(1) or (a)(2) will be in effect for a fuel 

3 producer; and 

4 (6) include procedures for— 

5 (A) notifying a fuel producer and the In6 ternal Revenue Service that a certification 

7 under subsection (a) will expire, at least 180 

8 days before such expiration; 

9 (B) expedited review and recertification 

10 under subsection (a), during the 180-day period 

11 described in subparagraph (A), of the green12 house gas emissions from a neat sustainable 

13 aviation fuel blending component produced by a 

14 fuel producer; and 

15 (C) submission of a certification under 

16 subsection (a) to the Internal Revenue Service. 

17 (c) DEFINITIONS.—For purposes of this section— 

18 (1) FUEL PATHWAY.—The term ‘‘fuel pathway’’ 

19 means the production process through which feed20 stock is converted into neat sustainable aviation fuel 

21 blending component, and includes the type of feed22 stock, the region in which such feedstock is located, 

23 the harvesting and collection method of such feed24 stock, the transportation of such feedstock to a fuel 

25 producing facility, and the method by which such 


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26 

•HR 8769 IH

1 feedstock is converted into neat sustainable aviation 

2 fuel blending component. 

3 (2) FUEL PRODUCER.—The term ‘‘fuel pro4 ducer’’ means a person or entity engaged in the pro5 duction of neat sustainable aviation fuel blending 

6 component. 

Æ 


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