Washington State Legislature passes bill incentivizing SAF production

The Washington State Legislature passed a bill April 21 to promote and incentivize sustainable aviation fuel (SAF) production and use.

Among its provisions, Senate Bill 5447 provides a $1-per-gallon tax credit for SAF that has at least 50 percent less CO2-equivalent emissions than conventional jet fuel.

In addition, the measure mandates a 2-cent increase in the incentive for every additional 1 percent reduction in CO2-equivelant emissions beyond 50 percent, not to exceed $2 per gallon.

The credit may not be claimed, however, until the state department of ecology verifies that there are one or more facilities operating in Washington with cumulative production capacity of at least 20 million gallons per year.

Coprocessed SAF is eligible for the tax credit.

The bill first passed the Senate in early March by a vote of 46-2.

This month, the measure passed the House unanimously 96-0.

SB 5447 was sent to Gov. Jay Inslee April 21, awaiting his signature to become law.

State Sen. Andy Billig, D-Spokane, the bill's sponsor, in March after initial passage in the Senate

In March, after passage in the Senate, Sen. Andy Billig, D-Spokane, the bill’s sponsor, said, “Our state is already at the forefront of the aviation industry, and we should also be a leader in the development of cleaner fuels for those same airplanes. This is a market just waiting to be tapped. There are potentially hundreds of family-wage jobs and wonderful opportunities for businesses in this emerging industry, and we’re just now scratching the surface.”

Billig continued, saying, “Washington is leading the way in combatting climate change, and by standing at the forefront of the sustainable fuel industry, we can solidify our position as the state others look to as the model of how to go green. This is quite literally a lifeline for people who work at and live near airports, as biofuels will help reduce particulate matter from the atmosphere, which is a huge contributor of air pollution and numerous health issues. There is no end to the benefits this policy can provide. The sky is the limit.”

According to the language of the bill, “Credits may be earned beginning on the first day of the first calendar quarter following the month in which notice under subsection (1)(e) of this section was received by the department. Credits may not be earned beginning nine calendar years after the close of the calendar year in which the credit may be earned.”

To read the bill as passed in both chambers, click here.