Washington state Governor Jay Inslee yesterday signed new legislation to create policy and per-gallon price incentives for the production and use of sustainable aviation fuel (SAF) in Washington.
The new law creates a per-gallon incentive for SAF with lifecycle greenhouse gas emissions that are at least 50 percent lower than traditional jet fuel. The incentive increases for each one percent reduction in lifecycle greenhouse gas beyond 50 percent, up to a potential incentive of $2 per gallon.
The per-gallon incentive can be claimed as a tax credit by fuel producers or consumers like airlines, but only once on any gallon.
Incentives will begin when a manufacturing facility becomes capable of producing at least 20 million gallons per year. Currently there is no continuous SAF production occurring in Washington state.
The bill also requires Washington State University and University of Washington to calculate the emission benefits near Seattle-Tacoma International Airport from the increased use of SAF.
Port of Seattle studies on SAF infrastructure and production feasibility indicate that regionally produced SAF is achievable, according to a news release. Studies also found that policy incentives to reduce the cost of production and sale price would accelerate the deployment of lower carbon, cleaner SAF.
The legislation can be viewed here.
