February 7, 2023
BY Erin Voegele
Illinois Gov. JB Pritzker on Feb. 3 signed the Invest in Illinois Act. The legislative package, in part, creates a $1.50 per gallon sustainable aviation fuel (SAF) purchase tax credit to support the supply and use of SAF within the state.
The SAF tax credit will become effective June 1, 2023, and is currently in place through Jan. 1, 2033. The credit applies to SAF sold to or used by an air carrier. To be eligible for the credit, SAF must achieve a 50 percent lifecycle greenhouse gas (GHG) reduction when compared to petroleum-based jet fuel using either the lifecycle methodology for SAF developed by the International Civil Aviation Organization or the most recent version of Argonne National Laboratory’s GREET model.
Advertisement
Prior to June 1, 2028, the credit can be claimed for fuel derived from biomass resources, waste streams, renewable energy sources, or gaseous carbon oxides. Beginning on June 1, 2028, the fuel must also be derived from domestic biomass resources. Fuel produced from palm feedstock is not eligible for the credit. The new law also includes a provision that states until July 1, 2033, on an annual basis, no credit may be earned by an air carrier for soybean oil-derived SAF once air carriers in the state have collectively purchased SAF containing 10 million gallons of soybean oil feedstock.
LanzaJet has spoken out in support of the newly created SAF tax credit. “The passage of the Sustainable Aviation Fuel Purchase Credit positions Illinois as a leader in the energy transition,” said Jimmy Samartzis, CEO of LanzaJet. “These types of incentives accelerate the development of this new industry as we work hard to decarbonize the transportation sector. LanzaJet is excited to play a role in bringing SAF to new consumers across Illinois, and we encourage other states to support the sustainable fuels industry with similar measures and help meet the nation’s climate change goals.”
Advertisement
More than 1.76 billion renewable identification numbers (RINs) were generated under the Renewable Fuel Standard in January, down from 1.91 billion generated during the same period of 2024, according to data released by the U.S. EPA on Feb. 20.
The U.S. EPA on Feb. 20 released updated small refinery exemption (SRE) data showing that 13 previously denied SRE petitions for Renewable Fuel Standard compliance years 2021 and 2022 are being reconsidered. No new SRE petitions were filed.
A coalition of biofuel, agriculture, fuel retailer and petroleum trade groups on Feb. 19 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to set robust, timely, multiyear RFS RVOs for 2026 and beyond.
OMV Petrom has announced the start of construction for a sustainable aviation fuel (SAF) and renewable diesel (HVO) production unit at the Petrobrazi refinery in Romania. The new facility will have an annual capacity of 250,000 tons.
CVR Energy Inc. released fourth quarter financial results on Feb. 18, reporting reduced renewable diesel production. The company also said it is pausing development of SAF capacity pending clarity on government subsidies.