Sustainable Jet Fuel Tax Credit Taking Off

Apr 14, 2023

Legislature Poised To Help Spur Sustainable Jet Fuel Production

Washingtonians will soon be able to reduce their carbon flight print once a plan that has passed the state legislature is signed into law.


The state Senate earlier this month approved legislation creating tax incentives to give the state's burgeoning sustainable aviation fuel industry a shot in the arm. 


The bill, SB 5447, received nearly unanimous and bipartisan support on the Senate floor. It aims to incentivize investment into sustainable jet fuel to make it more competitive with traditional aviation fuel. 


Plan Designed To Help State Become World Leader In Sustainable Jet Fuel


"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," said bill sponsor and Senate Majority Leader Andy Billig, following the measure's passage. 


That, in turn, is expected to spur job growth within the state as well as significantly reduce harmful air pollution, especially in communities around airports.


The U.S. Department of Energy estimates that traditional jet fuel accounts for up to 12 percent of all transportation-related greenhouse gas emissions nationwide whereas sustainable aviation fuel produces significantly less, depending on the source. 


Washingtonians Poised To Get Cleaner Air, Jobs With Greater SAF Use


Billig said the measure would also "extend a lifeline" to people who work and live around airports and whose air quality and health have been negatively affected.


In early February, a wide range of stakeholders -- from unions and airlines to Amazon and the Seattle Chamber of Commerce -- expressed strong support for the legislation at an early February hearing before the state Senate Environment, Energy & Technology Committee.


"As one of the greenest states in the country and as one of the most innovative, we believe it only makes sense for Washington to become a national and global leader in the production of sustainable aviation fuels," said Kris Johnson, CEO and president of the Association of Washington Business,

 

Charles Knutson, senior manager for public policy at  Amazon Public Affairs, told committee members that the legislation would help enable "purchasers like us to go bigger and faster."

 

Plan Expected To Spur Building Of Dedicated Sustainable Aviation Fuel Production Facility


Washington is home to almost every feedstock that sustainable aviation fuel can be made from as well as Washington State University, a leader in clean jet fuel research. All that is lacking is a devoted production facility, which supporters believe SB 5447 will help jumpstart.

 

"There are many other states that wished they were in the position Washington is right now with a chance to reduce greenhouse gas emissions and create clean energy jobs. SAF is good for jobs, good for the economy and good for the environment," Johnson said in his February testimony. 

 

Observed Billig on the bill's passage earlier this month: “There is no end to the benefits this policy can provide. The sky is the limit.”


The state House of Representatives approved SB 5447 unanimously on April 14. It now awaits the governor's signature.


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