U.S. lawmakers plan to introduce a bill on Thursday that would create a tax credit for lower-carbon sustainable aviation fuel, which they hope will slash emissions of greenhouse gases from the aviation industry.
The legislation, seen by Reuters, would impose a tax incentive of up to $2.00 for every gallon produced of sustainable aviation fuel, which can be made from feedstocks such as grease, animal fats and plant oils. That price would make it one of the most expensive subsidies for clean fuel.
U.S. Representatives Brad Schneider, a Democrat from Illinois, Dan Kildee, a Democrat from Michigan, and Julia Brownley, a Democrat from California, are expected to introduce the bill.
Lawmakers have been pushing for measures to fight climate change as President Joe Biden’s administration has called for the U.S. economy to have net zero greenhouse gas emissions by 2050, meaning removing as much carbon from the atmosphere as is emitted.