The "One, Big Beautiful Bill" has passed the House and is en route to the Senate. Among its myriad provisions there is one major step forward coupled with one, if not two, major steps backward for sustainable aviation fuel (SAF) and the American farmers who stand to benefit from the bill. The step forward: the Clean Fuel Production Credit for SAF (referred to in shorthand as "45Z") would be extended from 2027 to 2031. This stands in stark contrast to the more rapid phaseout, if not outright deletion, of most all other clean energy provisions originally enacted in the Inflation Reduction Act. The steps backward: the transferability of this credit is eliminated. The impact of that deletion will be felt by the American farmers and growers who produce the feedstock that is fundamental to SAF. Eliminating transferability will throttle the flow of private capital needed to unlock innovation -- just as commercial projects to produce SAF are progressing towards reality.
Pareen Shah, CMO and government relations lead for BioVeritas stated, said "It's very exciting to see 45Z move forward, and particularly with an extension to 2031. This clearly indicates there is strong bipartisan support for sustainable aviation fuel. One key provision missing in the latest bill, though, is 'transferability,' which would accelerate SAF investment and ultimately maximize the benefits SAF brings to American farmers and for extending America's energy dominance."
