Washington, DC – In a significant move to bolster the adoption of sustainable aviation fuel (SAF), the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released Notice 2024-37, providing additional guidance and safe harbors for SAF credits under the Internal Revenue Code. This notice aims to simplify the process of calculating lifecycle greenhouse gas emissions reductions and streamline certification requirements, fostering greater industry compliance and participation.

Safe harbors, in this context, are predefined methods and standards set by regulatory bodies that, when followed, provide assurance that certain requirements have been met. They serve to reduce uncertainty and the risk of non-compliance by offering clear, standardized procedures for calculating emissions reductions and obtaining certifications.

The new guidelines introduce the 40BSAF-GREET 2024 model, developed in collaboration with the Department of Energy (DOE) and the Environmental Protection Agency (EPA). This model allows SAF producers to calculate emissions reductions more accurately by incorporating advanced lifecycle analysis. “The 40BSAF-GREET 2024 model addresses previous concerns and ensures a robust and reliable methodology for emissions calculation,” stated a spokesperson from the DOE.

Additionally, the notice integrates the USDA’s Climate Smart Agriculture (CSA) Pilot Program, which introduces climate-smart practices for cultivating corn and soybeans used as SAF feedstocks. By adopting these practices, farmers can achieve further reductions in greenhouse gas emissions, thus enhancing the overall sustainability of SAF production.

Key features of the notice include:

• Safe Harbor Provisions: The 40BSAF-GREET 2024 model now offers a safe harbor for calculating emissions reductions, ensuring consistency and reliability in reporting.
• Certification Requirements: Producers must obtain certification from CARB LCFS verifiers or CSA certifiers, ensuring compliance with stringent environmental standards.
• Climate Smart Agriculture: The inclusion of the USDA CSA Pilot Program promotes sustainable farming practices, offering additional reductions in emissions for crops grown under these guidelines.

“The integration of climate-smart agriculture practices into SAF production is a game-changer,” commented an industry expert. “It not only reduces emissions but also promotes sustainable farming practices that benefit the environment.”

This comprehensive approach underscores the government’s commitment to advancing sustainable aviation fuel and reducing the aviation industry’s carbon footprint. By providing clear guidance and robust verification processes, the Treasury Department and IRS aim to support industry efforts in achieving significant environmental milestones.