119-hr1594

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1594 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1594

 To support the sustainable aviation fuel market, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 26, 2025

 Ms. Brownley (for herself and Mr. Schneider) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
 in addition to the Committees on Transportation and Infrastructure, 
Armed Services, Science, Space, and Technology, and Ways and Means, for 
a period to be subsequently determined by the Speaker, 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 market, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Sustainable Aviation Fuel Act''.

SEC. 2. NATIONAL GOAL.

 It is hereby declared that it is the national goal for the United 
States to reach--

    (1) a net 35-percent reduction in greenhouse gas emissions 
 for United States domestic and international aviation flights 
 by 2035, as compared to 2005; and

    (2) net zero greenhouse gas emissions for United States 
 domestic and international aviation flights by 2050.

SEC. 3. DEFINITIONS.

 In this Act:

    (1) Sustainable aviation fuel.--The term ``sustainable 
 aviation fuel'' has the meaning given such term in 

section 40B 
 of the Internal Revenue Code of 1986.

    (2) Qualified feedstock.--The term ``qualified feedstock'' 
 means sources of hydrogen and carbon not originating from 
 unrefined or refined petrochemicals.

    (3) Lifecycle greenhouse gas emissions.--The term 
 ``lifecycle greenhouse gas emissions'' means the combined 
 greenhouse gas emissions from feedstock production, collection 
 of feedstock, transportation of feedstock to fuel production 
 facilities, conversion of feedstock to fuel, transportation and 
 distribution of fuel, and fuel combustion in an aircraft 
 engine, as well as from induced land-use change emissions, as 
 calculated using appropriate modeling techniques approved by a 
 regulating authority.

    (4) 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 used, as calculated using appropriate modeling 
 techniques approved by a regulating authority.

    (5) Conventional jet fuel.--The term ``conventional jet 
 fuel'' means liquid hydrocarbon fuel used for aviation that is 
 derived or refined from petrochemicals.

SEC. 4. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM.

 

Section 40007 of the Inflation Reduction Act (49 U.S.C. 44504 note) 
is amended by adding at the end the following:
 ``

    (f) Additional Projects.--For purposes of continuing the 
competitive grant program established under subsection

    (a) for eligible 
entities to carry out projects located in the United States that 
produce, transport, blend, or store sustainable aviation fuel, or 
develop, demonstrate, or apply low- emission aviation technologies, in 
addition to amounts otherwise available, there are authorized to be 
appropriated to the Secretary for each of fiscal years 2026 through 
2030, out of any money in the Treasury not otherwise appropriated, to 
remain available until September 30, 2030, $200,000,000 for the 
purposes described in subsection

    (a) .''.

SEC. 5. LOW CARBON AVIATION FUEL STANDARD.

    (a) Establishment of Low Carbon Aviation Fuel Standard.--

Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by adding at the 
end the following:
 ``

    (w) Low Carbon Aviation Fuel Standard.--
 ``

    (1) === Definitions. ===
-In this subsection:
 ``
        (A) Aviation fuel.--The term `aviation fuel' 
 means fuel that is produced, sold, or dispensed in the 
 United States, for civil or military purposes, for 
 turbine-powered aviation.
 ``
        (B) Carbon intensity.--The term `carbon 
 intensity' means the quantity of lifecycle greenhouse 
 gas emissions per unit of fuel energy.
 ``
            (C) Credit exchange.--The term `credit exchange' 
 means a central marketplace with established rules and 
 regulations where buyers and sellers meet to conduct 
 trades.
 ``
            (D) Fuel standard.--The term `fuel standard' 
 means the low carbon fuel standard established under 
 paragraph

    (2) .
 ``

    (2) Establishment.--Not later than 1 year after the date 
 of enactment of this subsection, 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 
 2050, and thereafter, the average carbon intensity of all 
 aviation fuel used annually in the United States is reduced by 
 at least 50 percent, as compared to the average carbon 
 intensity of all aviation fuel used in the United States in 
 2005.
 ``

    (3) Targets.--In promulgating regulations under paragraph

    (2) , the Administrator shall set a target of a reduction of at 
 least 20 percent in the average carbon intensity of all 
 aviation fuel used annually in the United States by 2030, and 
 of at least 50 percent by 2050, as compared to the average 
 carbon intensity of all aviation fuel used in the United States 
 in 2005.
 ``

    (4) Requirements.--In promulgating regulations under 
 paragraph

    (2) , the Administrator shall--
 ``
        (A) establish a benchmark for the average carbon 
 intensity of aviation fuels for each calendar year, 
 beginning with the first full calendar year that begins 
 2 years after the date of enactment of this subsection, 
 suitable to achieving the targets specified in 
 paragraph

    (3) ;
 ``
        (B) apply the fuel standard to persons who 
 produce or import aviation fuel;
 ``
            (C) establish procedures for calculating the 
 carbon intensity of an aviation fuel, expressed in 
 grams of carbon dioxide equivalent per megajoule, in 
 accordance with--
 ``
            (i) the standards, recommended practices, 
 requirements and criteria, supporting 
 documents, implementation elements, and any 
 other technical guidance for sustainable 
 aviation fuels that are adopted by the 
 International Civil Aviation Organization with 
 the agreement of the United States; and
 ``
            (ii) any other more stringent accounting 
 practices determined by the Administrator to be 
 the best lifecycle greenhouse gas emission 
 accounting practices, provided that such 
 practices account for the aggregate quantity of 
 greenhouse gas emissions (including direct 
 emissions and significant indirect emissions 
 such as significant emissions from land use 
 changes), as determined by the Administrator, 
 related to the full fuel lifecycle, including 
 all stages of fuel and feedstock production and 
 distribution, from feedstock generation or 
 extraction through the distribution and 
 delivery and use of the finished fuel to the 
 ultimate consumer, where the mass values for 
 all greenhouse gases are adjusted to account 
 for their relative global warming potential;
 ``
            (D) determine how long the calculation of the 
 carbon intensity of an aviation fuel (pursuant to the 
 procedures established under subparagraph
            (C) ), will 
 remain in effect before needing to be reevaluated;
 ``
        (E) allow a person described in subparagraph
        (B) , 
 who, for a calendar year, produces or imports aviation 
 fuel--
 ``
            (i) that has an average carbon intensity 
 that is less than the benchmark for average 
 carbon intensity for that calendar year to, 
 except as provided in paragraph

    (8) , generate 
 credits, to be used, or transferred to another 
 person, to demonstrate compliance with this 
 subsection; and
 ``
            (ii) 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 subsection;
 ``
        (F) determine the--
 ``
            (i) appropriate amount of credits 
 generated and used to demonstrate compliance 
 pursuant to subparagraph
        (E) ;
 ``
            (ii) appropriate conditions, if any, on--
 ``
            (I) the duration of such credits; 
 and
 ``
            (II) the transfer of such credits 
 through a credit exchange; and
 ``
        (G) consult with all relevant stakeholders, 
 including aviation industry groups, renewable fuel 
 industry groups, researchers at institutions of higher 
 education, labor unions, consumer advocates, and any 
 other stakeholders the Administrator determines to be 
 appropriate.
 ``

    (5) Consultation.--In carrying out this subsection, the 
 Administrator shall consult with the Administrator of the 
 Federal Aviation Administration, the Secretary of Energy, and 
 the Secretary of Agriculture.
 ``

    (6) Coordination with states.--The Administrator shall, 
 after notice and opportunity for public hearing, 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 standard.
 ``

    (7) Revision.--If Congress enacts a standard or similar 
 law that the Administrator, in consultation with the 
 Administrator of the Federal Aviation Administration, 
 determines accomplishes the purposes of the fuel standard for 
 sectors of the economy that include the aviation sector, the 
 Administrator may revoke the fuel standard in favor of the 
 other standard or law.
 ``

    (8) 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

    (o) .
 ``

    (9) Report.--Not later than 180 days after the date of 
 enactment of this subsection, the Administrator shall submit to 
 Congress and make publicly available a report describing--
 ``
        (A) the status of the development of the fuel 
 standard; and
 ``
        (B) the considerations the Administrator is using 
 in developing the fuel standard.''.

    (b) Enforcement.--

Section 211
            (d) of the Clean Air Act (42 U.S.C. 
7545
            (d) ) is amended--

    (1) in paragraph

    (1) --
        (A) by striking ``or

    (o) of this section or the 
 regulations'' and inserting ``

    (o) , or

    (w) of this 
 section or the regulations'';
        (B) by striking ``or

    (o) of this section or who 
 fails'' and inserting ``

    (o) , or

    (w) of this section or 
 who fails''; and
            (C) by striking ``or

    (o) of this section which 
 establishes'' and inserting ``

    (o) , or

    (w) of this 
 section which establishes''; and

    (2) in paragraph

    (2) , by striking ``and

    (o) of this 
 section'' each place it appears and inserting ``

    (o) , and

    (w) of 
 this section''.

SEC. 6. PROCUREMENT OF SUSTAINABLE AVIATION FUEL BY THE DEPARTMENT OF 
 DEFENSE.

    (a) In General.--Effective October 1, 2025, the Secretary of 
Defense shall make a bulk purchase of an amount of sustainable aviation 
fuel that is not less than 10 percent of the total amount of aviation 
fuel procured for operational purposes (as defined in 

section 2922h of 
title 10, United States Code) if--

    (1) the cost of sustainable aviation fuel is competitive 
 with the fully burdened cost of conventional jet fuel available 
 for the same purpose; and

    (2) the sustainable aviation fuel is refined or produced in 
 the United States.

    (b) Blended Fuel.--If the Secretary of Defense purchases 
sustainable aviation fuel that is blended with conventional jet fuel, 
the percentage of sustainable aviation fuel in such blend will be 
counted towards the percentage described in subsection

    (a) .
            (c) Certification.--Before making a purchase under subsection

    (a) , 
the Secretary of Defense or the Secretary concerned (as defined in 

section 101

    (a)

    (9) of title 10, United States Code) shall certify that 
the sustainable aviation fuel is suitable for use in aircrafts of the 
Department of Defense.
            (d) Waiver.--

    (1) In general.--Subject to the requirements of paragraph

    (2) , the Secretary of Defense may waive the requirement under 
 subsection

    (a) for reasons of national security, including the 
 lack of available, qualifying sustainable aviation fuel.

    (2) Notice.--Not later than 30 days after issuing a waiver 
 under this subsection, the Secretary shall submit to the 
 congressional defense committees (as defined in 

section 101

    (a)

    (16) of title 10, United States Code) notice of the 
 waiver. Any such notice shall include each of the following:
        (A) The rationale of the Secretary for issuing the 
 waiver.
        (B) A certification that the waiver is in the 
 national security interest of the United States.

    (e) 

=== Definitions. ===
-The terms ``fully burdened cost'' and 
``operational purposes'' have the meanings given such terms, 
respectively, in 

section 2922h of title 10, United States Code.

SEC. 7. FEDERAL AVIATION ADMINISTRATION RESEARCH.

    (a) In General.--

Section 911

    (a) of the FAA Modernization and Reform 
Act of 2012 (49 U.S.C. 44504 note) is amended--

    (1) by striking ``assist in the development'' and inserting 
 the following:
 ``

    (1) assist in the development'';

    (2) by striking ``and other'' and inserting ``, other'';

    (3) by striking the period and inserting ``, and 
 sustainable fuel that can be used without the need to blend 
 with any other type of aviation fuel;''; and

    (4) by adding at the end the following:
 ``

    (2) promote the efforts of the aviation sector to become 
 a net-zero greenhouse gas emitting sector;
 ``

    (3) study the climate impacts of non-carbon dioxide 
 greenhouse gas emissions, water vapor, and contrails and ways 
 to minimize such impacts; and
 ``

    (4) develop a methodology for quantifying the non-carbon 
 dioxide climate impacts of aviation in a lifecycle analysis, 
 including the benefits of sustainable aviation fuel other than 
 the reduction in carbon dioxide emissions.''.

    (b) 

=== Definitions. ===
-

Section 911 of such Act is amended by adding at 
the end the following:
 ``

    (e) 

=== Definitions. ===
-In this section:
 ``

    (1) Sustainable aviation fuel.--The term `sustainable 
 aviation fuel' means liquid fuel consisting of synthesized 
 hydrocarbons that--
 ``
        (A) is derived from a qualified feedstock; and
 ``
        (B) conforms to the standards, recommended 
 practices, requirements and criteria, supporting 
 documents, implementation elements, and any other 
 technical guidance for sustainable aviation fuels that 
 are adopted by the International Civil Aviation 
 Organization with the agreement of the United States.
 ``

    (2) Qualified feedstock.--The term `qualified feedstock' 
 means sources of hydrogen and carbon not originating from 
 unrefined or refined petrochemicals.
 ``

    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $35,000,000 for each of fiscal years 2026 through 2030 
to carry out this section.''.

SEC. 8. DEPARTMENT OF ENERGY RESEARCH.

    (a) 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 fuel.

    (b) Collaboration.--In carrying out the program under subsection

    (a) , the Secretary shall collaborate with the national laboratories, 
the Department of Agriculture, and industry partners.
            (c) === Definitions. ===
-In this section:

    (1) Sustainable aviation fuel.--The term ``sustainable 
 aviation fuel'' means liquid fuel consisting of synthesized 
 hydrocarbons that--
        (A) is derived from a qualified feedstock; and
        (B) conforms to the standards, recommended 
 practices, requirements and criteria, supporting 
 documents, implementation elements, and any other 
 technical guidance for sustainable aviation fuels that 
 are adopted by the International Civil Aviation 
 Organization with the agreement of the United States.

    (2) National laboratory.--The term ``national laboratory'' 
 has the meaning given the term in 

section 2

    (3) of the Energy 
 Policy Act of 2005 (42 U.S.C. 15801

    (3) ).
            (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 9. EXTENSION OF CLEAN FUEL PRODUCTION CREDIT FOR SUSTAINABLE 
 AVIATION FUEL.

    (a) In General.--

Section 45Z

    (g) of the Internal Revenue Code of 
1986 is amended to read as follows:
 ``

    (g) Termination.--This section shall not apply--
 ``

    (1) in the case of transportation fuel which is not 
 sustainable aviation fuel, to fuel sold after December 31, 
 2027, and
 ``

    (2) in the case of sustainable aviation fuel, to fuel 
 sold after December 31, 2032.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to fuel produced after December 31, 2027.

SEC. 10. SUSTAINABLE AVIATION FUEL PRODUCTION PROPERTY ADDED TO ENERGY 
 CREDIT.

    (a) In General.--

Section 48 of the Internal Revenue Code of 1986 is 
amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (2)
        (A)
            (i) --
            (i) in subclause
            (VIII) , by striking 
 ``and'', and
            (ii) by adding at the end the following new 
 subclause:
 ``
            (X) sustainable aviation fuel 
 production property, and'',
        (B) in paragraph

    (3)
        (A) , by striking ``or'' at the 
 end of clause
            (x) , inserting ``or'' at the end of 
 clause
            (xi) , and by adding at the end the following new 
 clause:
 ``
            (xii) sustainable aviation fuel 
 production property,'', and
            (C) by redesignating paragraph

    (16) as paragraph

    (17) and by inserting after paragraph

    (15) the 
 following new paragraph:
 ``

    (16) Phaseout for sustainable aviation fuel production 
 property.--In the case of any energy property described in 
 paragraph

    (3)
        (A)
            (xii) the construction of which begins before 
 January 1, 2039, the energy percentage determined under 
 paragraph

    (2) shall be equal to--
 ``
        (A) in the case of any property the construction 
 of which begins after December 31, 2030, and before 
 January 1, 2032, 24 percent,
 ``
        (B) in the case of any property the construction 
 of which begins after December 31, 2031, and before 
 January 1, 2033, 18 percent, and
 ``
            (C) in the case of any property the construction 
 of which begins after December 31, 2032, and before 
 January 1, 2039, 12 percent.'', and

    (2) in subsection
            (c) , by adding at the end the following 
 new paragraph:
 ``

    (9) Sustainable aviation fuel production property.--
 ``
        (A) In general.--The term `sustainable aviation 
 fuel production property' means--
 ``
            (i) property which produces sustainable 
 aviation fuel (as defined in 

section 40B
            (d) ), 
 or
 ``
            (ii) property directly related to 
 enabling the production or distribution of 
 sustainable aviation fuel.
 ``
        (B) Recapture of credit.--The Secretary shall, by 
 regulations, provide for recapturing the benefit of any 
 credit allowable under subsection

    (a)

    (3)
        (A)
            (xii) with 
 respect to any sustainable aviation fuel production 
 property if the sustainable aviation fuel production of 
 such property comprises less than 80 percent of the 
 total fuel production of such property in any of the 5 
 taxable years immediately following the taxable year in 
 which such property was placed in service.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to fuel produced after December 31, 2025.
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