,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hgfi ,,in ,,the ,,house ,,of ,,representatives ,november #ah1 #bjbj ,ms4 ,brownley of ,california introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,transportation and ,infrastructure1 ,armed ,services1 ,science1 ,space1 and ,technology1 and ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to support the sustainable aviation fuel market1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,sustainable ,aviation ,fuel ,act4 #b4 ,national goal ,it is hereby declared that it is the national goal for the ,united ,states to reach-- 7#a7 a net #ce-percent reduction in greenhouse gas emissions for ,united ,states domestic and international aviation flights by #bjce1 as compared to #bjje2 and 7#b7 net zero greenhouse gas emissions for ,united ,states domestic and international aviation flights by #bjej4 #c4 ,definitions ,in this ,act3 7#a7 ,sustainable aviation fuel ,the term sustainable aviation fuel means liquid fuel consisting of synthesized hydrocarbons that-- 7,a7 meets the requirements of a ,department of ,defense specification for military jet fuel or an ,american ,society of ,testing and ,materials specification for aviation turbine fuel2 7,b7 is derived from qualified feedstock2 7,c7 is certified by the ,environmental ,protection ,agency ,administrator that such fuel-- 7i7 either-- 7,i7 conforms to the standards1 recommended practices1 requirements and criteria1 supporting documents1 implementation elements1 and any other technical guidance for sustainable aviation fuels that are adopted by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states2 or 7,,ii7 meets the definition of advanced biofuel under section #baa7o77#a7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a771 as demonstrated by compliance with ,environmental ,protection ,agency implementing regulations under subpart ,m of part #hj of title #dj1 ,code of ,federal ,regulations2 and 7ii7 achieves at least a #ej-percent reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel4 7#b7 ,qualified feedstock ,the term qualified feedstock means sources of hydrogen and carbon not originating from unrefined or refined petrochemicals4 7#c7 ,lifecycle greenhouse gas emissions ,the term lifecycle greenhouse gas emissions means the combined greenhouse gas emissions from feedstock production1 collection of feedstock1 transportation of feedstock to fuel production facilities1 conversion of feedstock to fuel1 transportation and distribution of fuel1 and fuel combustion in an aircraft engine1 as well as from induced land-use change emissions1 as calculated using appropriate modeling techniques approved by a regulating authority4 7#d7 ,induced land-use change emissions ,the term induced land-use change emissions means the greenhouse gas emissions resulting from the conversion of land to the production of feedstocks and from the conversion of other land due to the displacement of crops or animals for which the original land was previously used1 as calculated using appropriate modeling techniques approved by a regulating authority4 7#e7 ,conventional jet fuel ,the term conventional jet fuel means liquid hydrocarbon fuel used for aviation that is derived or refined from petrochemicals4 #d4 ,grant program 7a7 ,in general ,the ,secretary of ,transportation1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall carry out a competitive grant and cost-sharing agreement program for eligible entities to carry out projects located in the ,united ,states to produce1 transport1 blend1 or store sustainable aviation fuel4 7b7 ,selection ,in selecting an eligible entity to receive a grant or cost-share agreement under subsection 7a71 the ,secretary shall consider-- 7#a7 the anticipated public benefits of a project proposed by the eligible entity2 7#b7 the potential to increase the domestic production and deployment of sustainable aviation fuel2 7#c7 the potential greenhouse gas emissions from such project2 7#d7 the potential for creating new jobs in the ,united ,states2 7#e7 the potential net greenhouse gas emissions impact of different feedstocks to produce sustainable aviation fuel on a lifecycle basis1 which shall include potential direct and indirect greenhouse gas emissions 7including resulting from changes in land use72 and 7#f7 the proposed utilization of non-,federal contributions by the eligible entity4 7c7 ,authorization of appropriations ,there is authorized to be appropriated #bjj1jjj1jjj for each of fiscal years #bjba through #bjbe to carry out this section4 7d7 ,report ,not later than ,october #a1 #bjbf1 the ,secretary shall submit to the ,committee on ,commerce1 ,science1 and ,transportation and the ,committee on ,environment and ,public ,works of the ,senate and the ,committee on ,transportation and ,infrastructure and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report describing the results of the grant program under this section4 ,the report shall include the following3 7#a7 ,a description of the entities and projects that received grants or other cost-sharing agreements under this section4 7#b7 ,a detailed explanation for why each entity received the type of funding disbursement such entity did4 7#c7 ,a description of whether the program is leading to an increase in the production and deployment of sustainable aviation fuels and whether that increase is enough to keep the ,united ,states on track to achieve the goals described in section #b of this ,act4 7#d7 ,a description of the economic impacts resulting from the funding to and operation of the project4 7e7 ,eligible entity defined ,in this section1 the term eligible entity means-- 7#a7 a ,state or local government other than an airport sponsor2 7#b7 an air carrier2 7#c7 an airport sponsor2 and 7#d7 a person or entity engaged in the production1 transportation1 blending or storage of sustainable aviation fuel in the ,united ,states or feedstocks in the ,united ,states that could be used to produce sustainable aviation fuel4 #e4 ,low carbon aviation fuel standard 7a7 ,establishment of low carbon aviation fuel standard ,section #baa of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7 is amended by adding at the end the following3 7w7 ,low carbon aviation fuel standard 7#a7 ,definitions ,in this subsection3 7,a7 ,aviation fuel ,the term aviation fuel means fuel that is produced1 sold1 or dispensed in the ,united ,states1 for civil or military purposes1 for turbine-powered aviation4 7,b7 ,carbon intensity ,the term carbon intensity means the quantity of lifecycle greenhouse gas emissions per unit of fuel energy4 7,c7 ,credit exchange ,the term credit exchange means a central marketplace with established rules and regulations where buyers and sellers meet to conduct trades4 7,d7 ,fuel standard ,the term fuel standard means the low carbon fuel standard established under paragraph 7#b74 7#b7 ,establishment ,not later than #a year after the date of enactment of this subsection1 the ,administrator shall promulgate regulations to establish a low carbon fuel standard for aviation fuels that requires a reduction in carbon intensity for aviation fuels each calendar year such that by #bjej1 and thereafter1 the average carbon intensity of all aviation fuel used annually in the ,united ,states is reduced by at least #ej percent1 as compared to the average carbon intensity of all aviation fuel used in the ,united ,states in #bjje4 7#c7 ,targets ,in promulgating regulations under paragraph 7#b71 the ,administrator shall set a target of a reduction of at least #bj percent in the average carbon intensity of all aviation fuel used annually in the ,united ,states by #bjcj1 and of at least #ej percent by #bjej1 as compared to the average carbon intensity of all aviation fuel used in the ,united ,states in #bjje4 7#d7 ,requirements ,in promulgating regulations under paragraph 7#b71 the ,administrator shall-- 7,a7 establish a benchmark for the average carbon intensity of aviation fuels for each calendar year1 beginning with the first full calendar year that begins #b years after the date of enactment of this subsection1 suitable to achieving the targets specified in paragraph 7#c72 7,b7 apply the fuel standard to persons who produce or import aviation fuel2 7,c7 establish procedures for calculating the carbon intensity of an aviation fuel1 expressed in grams of carbon dioxide equivalent per megajoule1 in accordance with-- 7i7 the standards1 recommended practices1 requirements and criteria1 supporting documents1 implementation elements1 and any other technical guidance for sustainable aviation fuels that are adopted by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states2 and 7ii7 any other more stringent accounting practices determined by the ,administrator to be the best lifecycle greenhouse gas emission accounting practices1 provided that such practices account for the aggregate quantity of greenhouse gas emissions 7including direct emissions and significant indirect emissions such as significant emissions from land use changes71 as determined by the ,administrator1 related to the full fuel lifecycle1 including all stages of fuel and feedstock production and distribution1 from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer1 where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential2 7,d7 determine how long the calculation of the carbon intensity of an aviation fuel 7pursuant to the procedures established under subparagraph 7,c771 will remain in effect before needing to be reevaluated2 7,e7 allow a person described in subparagraph 7,b71 who1 for a calendar year1 produces or imports aviation fuel-- 7i7 that has an average carbon intensity that is less than the benchmark for average carbon intensity for that calendar year to1 except as provided in paragraph 7#h71 generate credits1 to be used1 or transferred to another person1 to demonstrate compliance with this subsection2 and 7ii7 that has an average carbon intensity that is greater than the benchmark for average carbon intensity for that calendar year to purchase credits to be used to demonstrate compliance with this subsection2 7,f7 determine the-- 7i7 appropriate amount of credits generated and used to demonstrate compliance pursuant to subparagraph 7,e72 7ii7 appropriate conditions1 if any1 on-- 7,i7 the duration of such credits2 and 7,,ii7 the transfer such credits through a credit exchange2 and 7,g7 consult with all relevant stakeholders1 including aviation industry groups1 renewable fuel industry groups1 researchers at institutions of higher education1 labor unions1 consumer advocates1 and any other stakeholders the ,administrator determines to be appropriate4 7#e7 ,consultation ,in carrying out this subsection1 the ,administrator shall consult with the ,administrator of the ,federal ,aviation ,administration1 the ,secretary of ,energy1 and the ,secretary of ,agriculture4 7#f7 ,coordination with ,states ,the ,administrator shall1 after notice and opportunity for public hearing1 waive application of the fuel standard in any ,state that has adopted a standard for aviation fuels that the ,administrator determines is at least as stringent as the fuel standard4 7#g7 ,revision ,if ,congress enacts a standard or similar law that the ,administrator1 in consultation with the ,administrator of the ,federal ,aviation ,administration1 determines accomplishes the purposes of the fuel standard for sectors of the economy that include the aviation sector1 the ,administrator may revoke the fuel standard in favor of the other standard or law4 7#h7 ,relationship to renewable fuel program ,no credit may be generated under this subsection with respect to renewable fuel for which a credit is generated under subsection 7o74 7#i7 ,report ,not later than #ahj days after the date of enactment of this subsection1 the ,administrator shall submit to ,congress and make publicly available a report describing-- 7,a7 the status of the development of the fuel standard2 and 7,b7 the considerations the ,administrator is using in developing the fuel standard4 4 7b7 ,enforcement ,section #baa7;d7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7;d77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking or 7o7 of this section or the regulations and inserting 7o71 or 7w7 of this section or the regulations2 7,b7 by striking or 7o7 of this section or who fails and inserting 7o71 or 7w7 of this section or who fails2 and 7,c7 by striking or 7o7 of this section which establishes and inserting 7o71 or 7w7 of this section which establishes2 and 7#b7 in paragraph 7#b71 by striking and 7o7 of this section each place it appears and inserting 7o71 and 7w7 of this section4 #f4 ,procurement of sustainable aviation fuel by the ,department of ,defense 7a7 ,in general ,effective ,october #a1 #bjbc1 the ,secretary of ,defense shall make a bulk purchase of an amount of sustainable aviation fuel that is not less than #aj percent of the total amount of aviation fuel procured for operational purposes 7as defined in section #bibb;h of title #aj1 ,united ,states ,code7 if-- 7#a7 the cost of sustainable aviation fuel is competitive with the fully burdened cost of conventional jet fuel available for the same purpose2 and 7#b7 the sustainable aviation fuel is refined or produced in the ,united ,states4 7b7 ,blended fuel ,if the ,secretary of ,defense purchases sustainable aviation fuel that is blended with conventional jet fuel1 the percentage of sustainable aviation fuel in such blend will be counted towards the percentage described in subsection 7a74 7c7 ,certification ,before making a purchase under subsection 7a71 the ,secretary of ,defense or the ,secretary concerned 7as defined in section #aja7;a77#i7 of title #aj1 ,united ,states ,code7 shall certify that the sustainable aviation fuel is suitable for use in aircrafts of the ,department of ,defense4 7d7 ,waiver 7#a7 ,in general ,subject to the requirements of paragraph 7#b71 the ,secretary of ,defense may waive the requirement under subsection 7a7 for reasons of national security1 including the lack of available1 qualifying sustainable aviation fuel4 7#b7 ,notice ,not later than #cj days after issuing a waiver under this subsection1 the ,secretary shall submit to the congressional defense committees 7as defined in section #aja7;a77#af7 of title #aj1 ,united ,states ,code7 notice of the waiver4 ,any such notice shall include each of the following3 7,a7 ,the rationale of the ,secretary for issuing the waiver4 7,b7 ,a certification that the waiver is in the national security interest of the ,united ,states4 7e7 ,definitions ,the terms fully burdened cost and operational purposes have the meanings given such terms1 respectively1 in section #bibb;h of title #aj1 ,united ,states ,code4 #g4 ,federal ,aviation ,administration ,research 7a7 ,in general ,section #iaa7;a7 of the ,,faa ,modernization and ,reform ,act of #bjab 7#di ,u4,s4,c4 #ddejd note7 is amended-- 7#a7 by striking assist in the development and inserting the following3 7#a7 assist in the development 2 7#b7 by striking and other and inserting 1 other2 7#c7 by striking the period and inserting 1 and sustainable fuel that can be used without the need to blend with any other type of aviation fuel22 7#d7 by adding at the end the following3 7#b7 promote the efforts of the aviation sector to become a net-zero greenhouse gas emitting sector2 7#c7 study the climate impacts of non-carbon dioxide greenhouse gas emissions1 water vapor1 and contrails and ways to minimize such impacts2 and 7#d7 develop a methodology for quantifying the non-carbon dioxide climate impacts of aviation in a lifecycle analysis1 including the benefits of sustainable aviation fuel other than the reduction in carbon dioxide emissions4 4 7b7 ,definitions ,section #iaa of such ,act is amended by adding at the end the following3 7e7 ,definitions ,in this section3 7#a7 ,sustainable aviation fuel ,the term sustainable aviation fuel means liquid fuel consisting of synthesized hydrocarbons that-- 7,a7 is derived from a qualified feedstock2 and 7,b7 conforms to the standards1 recommended practices1 requirements and criteria1 supporting documents1 implementation elements1 and any other technical guidance for sustainable aviation fuels that are adopted by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states4 7#b7 ,qualified feedstock ,the term qualified feedstock means sources of hydrogen and carbon not originating from unrefined or refined petrochemicals4 7f7 ,authorization of appropriations ,there is authorized to be appropriated to the ,administrator of the ,federal ,aviation ,administration #ce1jjj1jjj for each of fiscal years #bjba through #bjbe to carry out this section4 4 #h4 ,department of ,energy research 7a7 ,in general ,the ,secretary of ,energy shall carry out a program to research the use of cover crops or other crops grown for conservation purposes rather than for sale in the production of sustainable aviation fuel4 7b7 ,collaboration ,in carrying out the program under subsection 7a71 the ,secretary shall collaborate with the national laboratories1 the ,department of ,agriculture1 and industry partners4 7c7 ,definitions ,in this section3 7#a7 ,sustainable aviation fuel ,the term sustainable aviation fuel means liquid fuel consisting of synthesized hydrocarbons that-- 7,a7 is derived from a qualified feedstock2 and 7,b7 conforms to the standards1 recommended practices1 requirements and criteria1 supporting documents1 implementation elements1 and any other technical guidance for sustainable aviation fuels that are adopted by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states4 7#b7 ,national laboratory ,the term national laboratory has the meaning given the term in section #b7c7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja7c774 7d7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 #i4 ,sustainable aviation fuel credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dj;,a the following new section3 #dj;,b4 ,sustainable aviation fuel credit 7a7 ,in general ,for purposes of section #ch1 the sustainable aviation fuel credit for the taxable year is1 with respect to each gallon of neat sustainable aviation fuel blending component used by the taxpayer in the production of a qualified mixture-- 7#a7 #a4ej1 plus 7#b7 the applicable supplementary credit amount4 7b7 ,applicable supplementary credit amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable supplementary credit amount is #j4be1 reduced 7but not below zero7 by the emissions reduction certification amount4 7#b7 ,emissions reduction certification amount ,for purposes of paragraph 7#a71 the emissions reduction certification amount is #j4ja for every #b percentage points below #ajj percent for which the neat sustainable aviation fuel blending component is certified to reduce emissions in comparison with conventional fuel under section #aj of the ,sustainable ,aviation ,fuel ,act4 7c7 ,neat sustainable aviation fuel blending component ,for purposes of this section1 the term neat sustainable aviation fuel blending component means unblended liquid fuel-- 7#a7 that consists of synthesized hydrocarbons1 and 7#b7 that-- 7,a7 meets the requirements of a ,department of ,defense specification for military jet fuel or an ,american ,society of ,testing and ,materials specification for aviation turbine fuel1 7,b7 is derived from qualified feedstock1 and 7,c7 is certified by the ,environmental ,protection ,agency to-- 7i7 either-- 7,i7 comply with such standards of the ,international ,civil ,aviation ,organization for sustainable aviation fuels as have been adopted by the ,united ,states1 or 7,,ii7 meet the definition of advanced biofuel under section #baa7o77#a77;,b7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,b771 and 7ii7 achieve at least a #ej-percent reduction in lifecycle greenhouse gas emissions in comparison with conventional jet fuel4 7d7 ,qualified mixture ,for purposes of this section1 the term qualified mixture means a mixture of neat sustainable aviation fuel blending component and kerosene1 which-- 7#a7 is used by the taxpayer as aircraft fuel in a trade or business1 or 7#b7 is sold by the taxpayer to any person for use as aircraft fuel4 7e7 ,definitions ,for purposes of this section1 the terms qualified feedstock1 lifecycle greenhouse gas emissions1 and induced land-use change emissions have the meanings given such terms in section #c of the ,sustainable ,aviation ,fuel ,act4 7f7 ,sale or use must be in trade or business1 etc ,neat sustainable aviation fuel blending component used in the production of a qualified mixture shall be taken into account-- 7#a7 only if the sale or use described in subsection 7d7 is in a trade or business of the taxpayer or other person1 and 7#b7 for the taxable year in which such sale or use occurs4 7g7 ,application of section ,this section shall only apply to fuel produced before ,january #a1 #bjca4 4 7b7 ,credit made part of general business credit ,section #ch7;b7 7relating to current year business credit7 is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by inserting after paragraph 7#cc7 the following new paragraph3 7#cd7 the sustainable aviation fuel credit determined under section #dj;,b4 4 7c7 ,conforming amendment ,section #dj;,a7f7 of such ,code is amended by striking paragraph 7#d74 7d7 ,effective date ,the amendments made by this section shall apply to fuel produced after ,december #ca1 #bjbj4 #aj4 ,,epa certification of neat sustainable aviation fuel blending component 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,administrator of the ,environmental ,protection ,agency shall promulgate regulations1 for purposes of section #dj;,b of the ,internal ,revenue ,code of #aihf1 to certify-- 7#a7 whether a liquid fuel produced by a fuel producer qualifies as a neat sustainable aviation fuel blending component under subsection 7c77#b77;,c7 of such section2 and 7#b7 the percent reduction of greenhouse gas emissions from a gallon of neat sustainable aviation fuel blending component produced by a fuel producer in comparison to the greenhouse gas emissions from a gallon of conventional jet fuel4 7b7 ,considerations and inclusions ,in promulgating regulations under subsection 7a71 the ,administrator of the ,environmental ,protection ,agency shall-- 7#a7 establish procedures for fuel producers to apply to1 and receive from1 the ,environmental ,protection ,agency-- 7,a7 a certification1 with respect to liquid fuel produced by such fuel producer1 that such fuel qualifies as a neat sustainable aviation fuel blending component under section #dj;,b7c77#b77;,c7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 if the fuel described in 7,a7 so qualifies1 a certification of the percent reduction of greenhouse gas emissions from a gallon of such fuel in comparison to the greenhouse gas emissions from a gallon of conventional jet fuel2 7#b7 determine methods for calculating greenhouse gas emissions from a gallon of conventional jet fuel1 and for reviewing and updating such calculations every three years2 7#c7 for purposes of calculating the greenhouse gas emissions from a liquid fuel that does or may qualify as a neat sustainable aviation fuel blending component1 determine whether to use-- 7,a7 the ,sustainability ,certification ,schemes approved by the ,international ,civil ,aviation ,organization with agreement by the ,united ,states2 or 7,b7 other methods that take into account lifecycle greenhouse gas emissions from the applicable fuel pathway2 7#d7 require different certifications for each fuel pathway used by a fuel producer2 7#e7 determine how long a certification under subsection 7a77#a7 or 7a77#b7 will be in effect for a fuel producer2 and 7#f7 include procedures for-- 7,a7 notifying a fuel producer and the ,internal ,revenue ,service that a certification under subsection 7a7 will expire1 at least #ahj days before such expiration2 7,b7 expedited review and recertification under subsection 7a71 during the #ahj-;day period described in subparagraph 7,a71 of the greenhouse gas emissions from a neat sustainable aviation fuel blending component produced by a fuel producer2 and 7,c7 submission of a certification under subsection 7a7 to the ,internal ,revenue ,service4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,fuel pathway ,the term fuel pathway means the production process through which feedstock is converted into neat sustainable aviation fuel blending component1 and includes the type of feedstock1 the region in which such feedstock is located1 the harvesting and collection method of such feedstock1 the transportation of such feedstock to a fuel producing facility1 and the method by which such feedstock is converted into neat sustainable aviation fuel blending component4 7#b7 ,fuel producer ,the term fuel producer means a person or entity engaged in the production of neat sustainable aviation fuel blending component4