SAF May Create a D4 RIN Problem

SAF May Create a D4 RIN Problem

In September 2021 the government initiated the Three Billion Gallon Sustainable Aviation Fuel Challenge. The goal is to increase the production and use of sustainable aviation fuel (SAF) in the US. The target is to achieve domestic annual production of three billion gallons of SAF by 2030.

The SAF tax credit, as part of the Build Back Better Agenda, is expected to help cut costs and incentivize domestic production of SAF. In 2021, domestic SAF production reached five million gallons. In 2022, it climbed to 7.9 million gallons, and in 2023 it reached 14 million gallons. Production continues to increase despite the SAF credit not yet being in place. There remains a long way to go for the industry to meet the three-billion-gallon challenge.

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