U.S. Lawmakers Weigh Tax Credit for Soybean Oil-Based Aviation Fuel

Nov 19, 2021

U.S. lawmakers are weighing a bill that would allow soybean oil-based jet fuel to qualify for an unprecedented tax credit, a win for biofuel producers and a blow to environmental groups that say crop-based materials undermine the benefits of making greener fuels.

The White House has set ambitious targets to lower aviation emissions by 20% by 2030 and has touted sustainable aviation fuel, which is currently made in small quantities from used cooking oil and animal fat, as a means to hit those targets.

While numerous industries are pursuing ways to decarbonize vehicle use, some modes of transport, like heavy trucking and aviation, are viewed as difficult to convert to electric power.

Biofuel groups say it will be impossible to meet such targets without utilizing ethanol and soybean oil and want the current model for determining eligibility for the tax credit to be changed.

Some environmental groups, however, argue that increased demand for crops causes land, including rain forests, to be cleared in the United States and abroad.

Petroleum refiners have ramped up production of green fuels, supported by tax credits such as the biofuel blenders tax credit and various low-carbon fuel standards.

An early version of the $1.75 trillion Build Back Better bill currently being negotiated in Congress drew criticism from U.S. farmers and the growing sustainable aviation fuel industry. They opposed a clause that said producers would have to demonstrate a carbon score at least 50 percent better than the fossil fuel alternative, based on a model developed by the International Civil Aviation Organization (ICAO). read more

ICAO’s land-use penalties are three times higher than the leading U.S. model, known as GREET.

The latest version of the bill, updated on November 3, specifies the fuel production pathway could be “similar to that” adopted by ICAO, but also satisfies criteria under the Clean Air Act. It could be achieved by allowing fuels including soy-based jet fuel, as well as others.

“This leaves the door open for soy-derived SAF and threatens to undermine the climate benefits of a SAF credit,” said Nikita Pavlenko, senior researcher with the International Council on Clean Transportation Fuels team. He added that ethanol-based fuel seemed less likely to meet ICAO or GREET standards.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.