Washington state to initiate SAF standards

The Washington State Department of Ecology this week announced it will implement recent legislation on sustainable aviation fuel production and tax credit regulations under the state’s Clean Fuel Standards beginning early next year. [caption id="attachment_71169" align="alignleft" width="349"] (Courtesy/Canstock)[/caption] While forward-thinking in terms of 2050 sustainability targets, conflicting regulations among states could be a challenge for forwarders, sustainable aviation fuel (SAF) producers and other operators, Brandon Fried, executive director of the Airforwarders Association , told Air Cargo Next . “While individual states [refining] their standards can encourage tailored solutions, the risk of varying and conflicting fuel regulations is real,” he said. “Divergent standards could create logistical and compliance headaches, including excessive costs for airlines and freight forwarders operating across state lines. Ideally, collaborating between states to harmonize SAF quality and reporting requirements is the best approach.” Without standardized regulations and goals nationwide, states are beginning to consider their own regulations. Washington Gov. Jay Inslee signed SB 5447 into law in May to encourage the production of alternative jet fuels . Fuel requirements The Washington bill has several stipulations, according to the state’s ecology department, including: Requiring the University of Washington , in collaboration with Washington State University , to calculate emissions of ultrafine and fine particulate matter and sulfur dioxides for alternative jet fuels used at an international airport owned by a port district in a county with a population greater than 1.5 million; Creating a preferential business and occupation tax rate of 0.275% for the manufacturing and wholesaling of alternative jet fuels; Establishing a business and occupation and public utilities tax credit for certain sales and purchases of alternative jet fuel; and Providing that tax incentives begin when facilities in the state begin to produce a cumulative 20 million or more gallons of alternative jet fuel per year. “A business and occupation credit is also available for certain purchases of alternative jet fuel,” according to the legislation. “The credit is equal to $1 for each gallon of alternative jet fuel that has at least 50% less carbon dioxide equivalent emissions than conventional jet fuel. The credit amount increases by 2 cents for each additional 1% reduction in carbon dioxide equivalent emissions beyond 50%. The credit may not exceed $2 per gallon of alternative jet fuel.” Credits are earned only on purchases of alternative jet fuel for flights departing from Washington, the legislation states. “ This initiative is going to affect everyone in the aviation community,” Fried said. “Fuel producers will need to adapt to meet Washington’s specific SAF standards. Hopefully, airlines will benefit from access to cleaner fuel options, thus reducing their carbon footprint . Freight forwarders, who play a crucial role in cargo movement, will see cleaner shipping options, which their environmentally conscious customers will appreciate.” Washington is not the first state to amend regulations regarding cleaner jet fuels. California initiated a low-carbon fuel standard in 2011, according to the California Air Resources Board.

Washington state to initiate SAF standards

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