Growth Energy Thanks President Biden for Signing Key Climate Priorities into LawTue, 16 Aug 2022 15:42:22 CDT
Today, Growth Energy CEO Emily Skor thanked President Biden for signing the Inflation Reduction Act into law. This initiative includes key provisions designed to expand the use of low-carbon biofuels, including infrastructure investments and tax credits for Sustainable Aviation Fuel (SAF), carbon capture, cellulosic biofuels, and bio-based diesel.
“We applaud President Biden and Congressional leaders for advancing our nation’s investment in low-carbon biofuels for a cleaner future,” said Skor. “Biofuels are critical to meeting climate goals, and this law will help maximize our industry’s contributions to a cleaner future by expanding the volume of low-carbon biofuels available across the entire transportation sector - on the ground, in the air, and at sea. This initiative will help jump-start climate progress, while delivering more savings at the pump, greater long-term energy security, and a welcome economic boon to rural communities.“
Included in the Inflation Reduction Act are several key priorities for the biofuels industry:
· 45Q tax credits for carbon oxide sequestration and utilization extended through 2032 with adjusted rates of $85/ton for sequestration and $60/ton for utilization.
· Clean Fuel Production Credit starting in 2025 and expiring at the end of 2027 for the production of low-carbon fuels.
· Five Years of Sustainable Aviation Fuel (SAF) credits: A stand-alone credit for SAF then as part of the Clean Fuel Production Credit for three years.
· $500 million for biofuels infrastructure through the end of 2031.
· Extension of Biomass-Based Diesel Blenders Credit and the Second-Generation Biofuels Producer Credit for two years.
· $300 million grant program to increase domestic production and deployment of SAF and low-emission aviation technologies
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