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By
Kim Chipman
October 31,
2023
Boeing, ADM Push Yellen to Act Fast
on Green Jet Fuel Tax Policy
(Bloomberg) -- Boeing Co., Archer-Daniels-Midland Co., Delta Air Lines
Inc. and other companies are urging Treasury Secretary Janet Yellen to
back tax policy they say is needed to build a thriving US industry for
green jet fuel.
Most Read from Bloomberg
Their letter to Yellen Wednesday, signed by about 70 companies, is the
latest salvo in a lobbying fight over how to monitor carbon dioxide
emissions across the supply chain for sustainable aviation fuel, or
SAF.
Biofuel producers and airlines are pushing for
SAF tax rules under President Joe Biden's landmark climate law that
would track emissions through an approach already used by the US
Energy Department. Any new model would risk further delay, they warn,
adding that a rival approach out of the United Nations — which is
being encouraged by fuel retailers and environmentalists — is too
outdated and lacks flexibility.
“Modeling uncertainty today is a multi-year development problem due to
the buildout schedules of SAF production facilities,” the companies
wrote. “We underscore the urgency for providing clarity on this issue
as soon as possible.”
Biofuel makers say without what their preferred model for measuring
carbon from the SAF supply chain, the market will lack signals needed
to slash aviation emissions and spur new technologies and jobs.
Meanwhile, trade groups representing truck stops and fuel retailers
argue that the UN-crafted approach is more stringent and would guard
against raw materials like vegetable oils shifting to SAF production
and away from green diesel used in heavy road vehicles.
Read More: White House’s Podesta Pressed by Renewable Diesel Lobby on
SAF
The letter to Yellen — also signed by Deere & Co., crop trader Bunge
Ltd. and top ethanol maker Poet LLC — is set to be widely released on
Wednesday as Biden visits Minnesota to focus on rural investments,
including a push to boost availability of domestic biofuels.
--With assistance from Jennifer A. Dlouhy.
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