H.R. 1594 — Sustainable Aviation Fuel Act

This section establishes national goals for U.S. domestic and international aviation flights of a net 35% reduction in greenhouse gas emissions by 2035 (as compared to 2005) and net zero greenhouse gas emissions by 2050.

This section defines terms for purposes of the Act, including (1) sustainable aviation fuel, as provided in IRC §40B; (2) qualified feedstock, as sources of hydrogen and carbon not originating from unrefined or refined petrochemicals; (3) lifecycle greenhouse gas emissions, as combined emissions across the full fuel production and use cycle (including induced land-use change emissions) calculated via approved modeling techniques; (4) induced land-use change emissions, as emissions from land conversion for feedstocks and related crop or animal displacement calculated via approved modeling techniques; and (5) conventional jet fuel, as liquid hydrocarbon aviation fuel derived or refined from petrochemicals.

This section authorizes appropriations of $200 million for each of FY2026 through 2030, in addition to amounts otherwise available, for the competitive grant program established under Section 40007(a) of the Inflation Reduction Act (i.e., Alternative Fuel and Low-Emission Aviation Technology Program). The program provides grants to eligible entities for projects located in the United States that produce, transport, blend, or store sustainable aviation fuel or develop, demonstrate, or apply low-emission aviation technologies. (Funds remain available until September 30, 2030.)

This section establishes a low carbon aviation fuel standard under section 211 of the Clean Air Act (42 U.S.C. 7545) that requires the EPA Administrator to promulgate regulations within one year of enactment setting annual benchmarks for average carbon intensity (i.e., lifecycle greenhouse gas emissions per unit of fuel energy) of aviation fuel (i.e., turbine-powered aviation fuel produced, sold, or dispensed in the U.S. for civil or military use), beginning two years after enactment, to achieve at least a 20% reduction by 2030 and 50% by 2050 (from 2005 baseline levels). The standard applies to aviation fuel producers and importers, who generate tradable credits via a credit exchange if their fuel's average carbon intensity is below the annual benchmark or purchase credits if above; carbon intensity is calculated using International Civil Aviation Organization standards or stricter full-lifecycle methods (including direct and significant indirect emissions such as from land use change). (1) The Administrator must consult aviation and renewable fuel stakeholders, the Federal Aviation Administration, Department of Energy, and Department of Agriculture; (2) EPA may waive the standard for states with equally stringent aviation fuel standards; (3) EPA may revoke it if Congress enacts a comparable law covering aviation; and (4) no credits may be generated for renewable fuels eligible under the Renewable Fuel Standard program (CAA §211(o)). Within 180 days of enactment, EPA must report to Congress on the standard's development.

This section requires the Secretary of Defense, effective October 1, 2025, to procure sustainable aviation fuel comprising at least 10% of the total aviation fuel procured for operational purposes (as defined in former 10 U.S.C. 2922h)—provided such fuel is cost-competitive with the fully burdened cost (as defined in former 10 U.S.C. 2922h) of conventional jet fuel and refined or produced in the United States. Blended sustainable aviation fuel counts proportionally toward the 10% threshold; the Secretary or Secretary concerned must certify its suitability for DoD aircraft prior to purchase; and the Secretary may waive the requirement for national security reasons (including fuel unavailability), with notice to congressional defense committees within 30 days including the rationale and a certification that the waiver serves the national security interest of the United States.

This section amends Section 911 of the FAA Modernization and Reform Act of 2012 (relating to Federal Aviation Administration alternative aviation fuel research) by (1) revising the fuel development directive to specify sustainable aviation fuel that can be used without blending with other aviation fuel, (2) adding requirements to promote aviation sector net-zero greenhouse gas emissions, study non-carbon dioxide climate impacts (including water vapor and contrails) and minimization methods, and develop a lifecycle analysis methodology for non-carbon dioxide aviation impacts (including sustainable aviation fuel benefits beyond carbon dioxide reductions), (3) defining sustainable aviation fuel (i.e., synthesized hydrocarbons from qualified feedstocks conforming to International Civil Aviation Organization standards) and qualified feedstock (i.e., non-petrochemical hydrogen and carbon sources), and (4) authorizing $35 million for each of FY2026 through FY2030.

This section directs the Secretary of Energy to carry out a research program on using cover crops or other conservation-purpose crops (rather than for sale) to produce sustainable aviation fuel (SAF), defined as synthesized hydrocarbons from qualified feedstocks meeting International Civil Aviation Organization standards adopted by the U.S. In implementing the program, the Secretary must collaborate with national laboratories (as defined in 42 U.S.C. 15801(3)), the Department of Agriculture, and industry partners. The section authorizes appropriations of such sums as necessary.

This section extends the termination date of the Clean Fuel Production Credit to fuel sold after December 31, 2032 (from December 31, 2027), for sustainable aviation fuel, while fuel that is transportation fuel but not sustainable aviation fuel terminates after December 31, 2027. (The credit, enacted by the Inflation Reduction Act, provides payments per gallon of qualifying clean transportation fuel based on lifecycle greenhouse gas emissions reductions relative to petroleum baselines.)

This section adds sustainable aviation fuel production property to the energy investment tax credit under Section 48 of the Internal Revenue Code (generally 30% of qualified investment in energy property, such as equipment for producing electricity from renewable sources). Sustainable aviation fuel production property includes (1) property that produces sustainable aviation fuel (as defined in IRC §40B(d), i.e., sustainable liquid fuel certified to achieve at least 50% lifecycle greenhouse gas emissions reductions compared to conventional jet fuel) or (2) property directly related to enabling the production or distribution of such fuel. For property the construction of which begins before January 1, 2039, the credit phases down to (1) 24% if construction begins after December 31, 2030, and before January 1, 2032; (2) 18% if construction begins after December 31, 2031, and before January 1, 2033; and (3) 12% if construction begins after December 31, 2032, and before January 1, 2039. (Thus, the credit is subject to recapture if sustainable aviation fuel comprises less than 80% of the property's total fuel production in any of the five taxable years following the year placed in service.) The amendments apply to fuel produced after December 31, 2025.