I 
118TH CONGRESS 
1ST SESSION H. R. 2747 
To support the sustainable aviation fuel market, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 20, 2023 
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 Representa-
tives 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— 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(1) a net 35-percent reduction in greenhouse 
gas emissions for United States domestic and inter-
national 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’’ means liquid fuel con-
sisting of synthesized hydrocarbons that— 
(A) meets the requirements of a Depart-
ment of Defense specification for military jet 
fuel or an American Society of Testing and Ma-
terials specification for aviation turbine fuel; 
(B) is derived from qualified feedstock; 
and 
(C) is certified by the Environmental Pro-
tection Agency Administrator that such fuel— 
(i) either— 
(I) conforms to the standards, 
recommended practices, requirements 
and criteria, supporting documents, 
implementation elements, and any 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
other technical guidance for sustain-
able aviation fuels that are adopted by 
the International Civil Aviation Orga-
nization with the agreement of the 
United States; or 
(II) meets the definition of ‘‘ad-
vanced 
biofuel’’ 
under 
section 
211(o)(1) of the Clean Air Act (42 
U.S.C. 7545(o)(1)), as demonstrated 
by compliance with Environmental 
Protection Agency implementing regu-
lations under subpart M of part 80 of 
title 40, Code of Federal Regulations; 
and 
(ii) achieves at least a 50-percent re-
duction in lifecycle greenhouse gas emis-
sions compared to conventional jet fuel. 
(2) QUALIFIED FEEDSTOCK.—The term ‘‘quali-
fied feedstock’’ means sources of hydrogen and car-
bon not originating from unrefined or refined petro-
chemicals. 
(3) 
LIFECYCLE
GREENHOUSE
GAS
EMIS-
SIONS.—The term ‘‘lifecycle greenhouse gas emis-
sions’’ means the combined greenhouse gas emis-
sions from feedstock production, collection of feed-
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
stock, transportation of feedstock to fuel production 
facilities, conversion of feedstock to fuel, transpor-
tation and distribution of fuel, and fuel combustion 
in an aircraft engine, as well as from induced land- 
use change emissions, as calculated using appro-
priate 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 feed-
stocks 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. GRANT PROGRAM. 
(a) IN GENERAL.—The Secretary of Transportation, 
in consultation with the Administrator of the Environ-
mental Protection Agency, shall carry out a competitive 
grant and cost-sharing agreement program for eligible en-
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
tities to carry out projects located in the United States 
to produce, transport, blend, or store sustainable aviation 
fuel. 
(b) SELECTION.—In selecting an eligible entity to re-
ceive a grant or cost-share agreement under subsection 
(a), the Secretary shall consider— 
(1) the anticipated public benefits of a project 
proposed by the eligible entity; 
(2) the potential to increase the domestic pro-
duction and deployment of sustainable aviation fuel; 
(3) the potential greenhouse gas emissions from 
such project; 
(4) the potential for creating new jobs in the 
United States; 
(5) the potential net greenhouse gas emissions 
impact of different feedstocks to produce sustainable 
aviation fuel on a lifecycle basis, which shall include 
potential direct and indirect greenhouse gas emis-
sions (including resulting from changes in land use); 
and 
(6) the proposed utilization of non-Federal con-
tributions by the eligible entity. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $200,000,000 for each of 
fiscal years 2024 through 2028 to carry out this section. 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(d) REPORT.—Not later than October 1, 2029, the 
Secretary shall submit to the Committee on Commerce, 
Science, and Transportation and the Committee on Envi-
ronment and Public Works of the Senate and the Com-
mittee on Transportation and Infrastructure and the 
Committee on Energy and Commerce of the House of 
Representatives a report describing the results of the 
grant program under this section. The report shall include 
the following: 
(1) A description of the entities and projects 
that received grants or other cost-sharing agree-
ments under this section. 
(2) A detailed explanation for why each entity 
received the type of funding disbursement such enti-
ty did. 
(3) A description of whether the program is 
leading to an increase in the production and deploy-
ment of sustainable aviation fuels and whether that 
increase is enough to keep the United States on 
track to achieve the goals described in section 2 of 
this Act. 
(4) A description of the economic impacts re-
sulting from the funding to and operation of the 
project. 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(e) ELIGIBLE ENTITY DEFINED.—In this section, the 
term ‘‘eligible entity’’ means— 
(1) a State or local government other than an 
airport sponsor; 
(2) an air carrier; 
(3) an airport sponsor; and 
(4) a person or entity engaged in the produc-
tion, transportation, blending or storage of sustain-
able aviation fuel in the United States or feedstocks 
in the United States that could be used to produce 
sustainable aviation fuel. 
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 fol-
lowing: 
‘‘(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 dis-
pensed in the United States, for civil or military 
purposes, for turbine-powered aviation. 
‘‘(B) CARBON INTENSITY.—The term ‘car-
bon intensity’ means the quantity of lifecycle 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
greenhouse gas emissions per unit of fuel en-
ergy. 
‘‘(C) CREDIT EXCHANGE.—The term ‘cred-
it 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 estab-
lish 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 an-
nually in the United States by 2030, and of at least 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
50 percent by 2050, as compared to the average car-
bon intensity of all aviation fuel used in the United 
States in 2005. 
‘‘(4) REQUIREMENTS.—In promulgating regula-
tions under paragraph (2), the Administrator 
shall— 
‘‘(A) establish a benchmark for the average 
carbon intensity of aviation fuels for each cal-
endar year, beginning with the first full cal-
endar year that begins 2 years after the date of 
enactment of this subsection, suitable to achiev-
ing 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, ex-
pressed in grams of carbon dioxide equivalent 
per megajoule, in accordance with— 
‘‘(i) 
the 
standards, 
recommended 
practices, requirements and criteria, sup-
porting documents, implementation ele-
ments, and any other technical guidance 
for sustainable aviation fuels that are 
adopted by the International Civil Aviation 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
Organization with the agreement of the 
United States; and 
‘‘(ii) any other more stringent ac-
counting practices determined by the Ad-
ministrator to be the best lifecycle green-
house 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 sig-
nificant emissions from land use changes), 
as determined by the Administrator, re-
lated to the full fuel lifecycle, including all 
stages of fuel and feedstock production and 
distribution, from feedstock generation or 
extraction through the distribution and de-
livery and use of the finished fuel to the 
ultimate consumer, where the mass values 
for all greenhouse gases are adjusted to ac-
count for their relative global warming po-
tential; 
‘‘(D) determine how long the calculation of 
the carbon intensity of an aviation fuel (pursu-
ant to the procedures established under sub-
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
paragraph (C)), will remain in effect before 
needing to be reevaluated; 
‘‘(E) allow a person described in subpara-
graph (B), who, for a calendar year, produces 
or imports aviation fuel— 
‘‘(i) that has an average carbon inten-
sity that is less than the benchmark for av-
erage carbon intensity for that calendar 
year to, except as provided in paragraph 
(8), generate credits, to be used, or trans-
ferred to another person, to demonstrate 
compliance with this subsection; and 
‘‘(ii) that has an average carbon in-
tensity that is greater than the benchmark 
for average carbon intensity for that cal-
endar year to purchase credits to be used 
to demonstrate compliance with this sub-
section; 
‘‘(F) determine the— 
‘‘(i) appropriate amount of credits 
generated and used to demonstrate compli-
ance pursuant to subparagraph (E); 
‘‘(ii) appropriate conditions, if any, 
on— 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
‘‘(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 ad-
vocates, and any other stakeholders the Admin-
istrator determines to be appropriate. 
‘‘(5) CONSULTATION.—In carrying out this sub-
section, the Administrator shall consult with the Ad-
ministrator of the Federal Aviation Administration, 
the Secretary of Energy, and the Secretary of Agri-
culture. 
‘‘(6) COORDINATION WITH STATES.—The Ad-
ministrator shall, after notice and opportunity for 
public hearing, waive application of the fuel stand-
ard 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 consulta-
tion with the Administrator of the Federal Aviation 
Administration, determines accomplishes the pur-
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
poses 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 PRO-
GRAM.—No credit may be generated under this sub-
section 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 Admin-
istrator 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 sec-
tion or who fails’’; and 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(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 com-
petitive 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 avia-
tion fuel in such blend will be counted towards the per-
centage described in subsection (a). 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(c) CERTIFICATION.—Before making a purchase 
under subsection (a), the Secretary of Defense or the Sec-
retary 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 Depart-
ment 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 rea-
sons of national security, including the lack of avail-
able, 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 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
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 Mod-
ernization 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 sustain-
able aviation fuel other than the reduction in carbon 
dioxide emissions.’’. 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(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 con-
sisting of synthesized hydrocarbons that— 
‘‘(A) is derived from a qualified feedstock; 
and 
‘‘(B) conforms to the standards, rec-
ommended practices, requirements and criteria, 
supporting 
documents, 
implementation 
ele-
ments, 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 ‘quali-
fied feedstock’ means sources of hydrogen and car-
bon not originating from unrefined or refined petro-
chemicals. 
‘‘(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 2024 through 2028 to carry out this sec-
tion.’’. 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
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 con-
sisting of synthesized hydrocarbons that— 
(A) is derived from a qualified feedstock; 
and 
(B) conforms to the standards, rec-
ommended practices, requirements and criteria, 
supporting 
documents, 
implementation 
ele-
ments, 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 ‘‘na-
tional laboratory’’ has the meaning given the term in 
section 2(3) of the Energy Policy Act of 2005 (42 
U.S.C. 15801(3)). 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(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 De-
cember 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 PROP-
ERTY ADDED TO ENERGY CREDIT. 
(a) IN GENERAL.—Section 48 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(A)(i)— 
(i) in subclause (VIII), by striking 
‘‘and’’, and 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
(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 produc-
tion property,’’, and 
(C) by redesignating paragraph (16) as 
paragraph (17) and by inserting after para-
graph (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, 
2037, the energy percentage determined under para-
graph (2) shall be equal to— 
‘‘(A) in the case of any property the con-
struction of which begins after December 31, 
2028, and before January 1, 2030, 24 percent, 
‘‘(B) in the case of any property the con-
struction of which begins after December 31, 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
2029, and before January 1, 2031, 18 percent, 
and 
‘‘(C) in the case of any property the con-
struction of which begins after December 31, 
2030, and before January 1, 2037, 12 per-
cent.’’, and 
(2) in subsection (c), by adding at the end the 
following new paragraph: 
‘‘(9) SUSTAINABLE
AVIATION
FUEL
PRODUC-
TION PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘sustainable 
aviation fuel production property’ means— 
‘‘(i) property which produces sustain-
able aviation fuel (as defined in section 
40B(d)), or 
‘‘(ii) property directly related to ena-
bling the production or distribution of sus-
tainable aviation fuel. 
‘‘(B) RECAPTURE OF CREDIT.—The Sec-
retary shall, by regulations, provide for recap-
turing 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 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS
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, 2023. 
Æ 
VerDate Sep 11 2014 
22:08 Apr 26, 2023
Jkt 039200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6301
E:\BILLS\H2747.IH
H2747
kjohnson on DSK79L0C42PROD with BILLS