Groups ask Congress to clarify SAF credit to remove coprocessed fuels from eligibility

The National Biodiesel Board, Growth Energy, the travel-plaza and truck-stop association NATSO, and the fuel-marketers group SIGMA asked congressional leaders to exclude fuels made by coprocessing biomass with petroleum at oil refineries from proposed sustainable aviation fuel (SAF) tax incentives. Coprocessed fuels are ineligible for the biodiesel and renewable diesel tax credit. The groups asked Congress to clarify language in the Build Back Better Act to ensure that all transportation fuels—including aviation fuels—made by coprocessing biomass with nonbiomass feedstocks are ineligible for incentives.

“To prevent stranding investments in existing and emerging environmentally beneficial biofuels facilities in rural America, and to ensure that any new SAF incentives are consistent with other tax incentives in driving economic, employment and environmental benefits, we respectfully request that lawmakers amend the definitions of SAF in both the Sustainable Aviation Fuel and the Clean Fuel Production Credit to clarify that eligible SAF does not include fuels derived by coprocessing biomass with a feedstock that is not biomass,” the letter states.

The letter can be downloaded here.