Biden administration delays aviation fuel emissions modeling By Reuters

By Jarrett Renshaw and Leah Douglas

(Reuters) – The Biden administration will delay an expected announcement on Friday of its revised climate emissions model for ethanol due to disagreements, two sources familiar with the matter said, extending uncertainty over whether the fuel-based corn can be considered a new sustainable aviation fuel. SAF) tax credits.

A White House spokesperson confirmed the delay and said the revised model would be finalized in the coming weeks.

The administration has been divided for months over how to implement a $1.25-per-gallon SAF tax credit included in the Inflation Reduction Act, which requires SAF producers to demonstrate a 50% reduction in greenhouse gas emissions compared to aviation fuel.

The ethanol industry wants to become a major supplier of SAF, but must demonstrate its climate benefits using an approved model.

The Biden administration in December said it would allow the industry to use its preferred model – the Department of Energy’s GREET (Greenhouse Gases, Regulated Emissions and Energy Use in Technologies) model – but only after revisions. Sources at the time told Reuters that the new guidance would arrive on March 1.

But that has now been delayed, after Thursday’s meeting at the White House involving key players from various agencies failed to resolve outstanding issues over the model revisions, according to the two sources familiar with the meeting.

“We are making progress on critical decisions to update the model and issue further Treasury guidance, including the integration of key greenhouse gas emission reduction strategies and climate-friendly agricultural practices,” the White House spokesperson.

The Environmental Protection Agency did not respond to a request for comment.

“This delay is frustrating, but we are optimistic that this is for a manufacturing reason,” said Emily Skor, CEO of biofuels trade group Growth Energy.

“Ultimately, the most important thing is to get it right and make sure the resulting updates provide real opportunities for American farmers to contribute to the SAF market,” he said.

Any revisions will likely not allow ethanol to automatically qualify as a feedstock for the SAF tax credit, forcing the industry to cobble together other practices such as the use of solar energy and sustainable agriculture to push them above of the eligibility threshold, the sources said.

Environmental groups have argued that a revised model should give ethanol a higher penalty for carbon released when the land is farmed to provide a more accurate accounting of the fuel’s emissions.