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Seek input on alternative jet fuel
Washington has long been a leader in aerospace and climate policy. In 2023, the Legislature passed Senate Bill (SB) 5447, which supports the development of alternative jet fuel (AJF, also called sustainable aviation fuel or SAF). Among other things, SB 5447 creates a Business & Occupation tax credit for certain businesses involved in the manufacturing of AJF. Though the tax credit will be issued by the Department of Revenue, Ecology plays a key role in determining if the threshold is reached that initiates the tax credit, and in certifying the carbon intensity of eligible fuels.
Per law, the tax credit may not begin to be claimed until the Department of Ecology “verifies that there are one or more facilities operating in this state with cumulative production capacity of at least 20,000,000 gallons of alternative jet fuel each year”. After this threshold is reached, manufacturers and blenders of AJF can claim a tax credit for fuel that reduces greenhouse gas emissions by at least 50% compared to fossil jet fuel, starting at $1 per gallon and going up to as much as $2 per gallon the more the fuel emissions are reduced.
To prepare for this, Ecology is seeking information from prospective producers of alternative jet fuel:
- What is your current AJF production capacity?
- What is your timeline for production AJF in Washington?
- How do you recommend that Ecology verify production capacity? (E.g. what types of documentation, third-party sources, etc.?)
Email your responses by October 27 to CFS@ecy.wa.gov with the subject line “Alternative jet fuel inquiry”. Clean Fuel Standard staff may reach out to you with questions or clarifications.
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Abbey Brown
Clean Fuel Standard Technical Lead
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CFS@ecy.wa.gov
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