NATSO and SIGMA, representing travel centers and fuel marketers, have urged the U.S. Department of Energy (DOE) to adopt a market-oriented and technology-neutral approach to transportation decarbonization. While they acknowledge the Biden Administration’s focus on alternative fuels to reduce carbon emissions, they argue that policies to scale sustainable aviation fuel (SAF) should consider the wider implications of prioritizing nascent fuel technologies over existing low-carbon options like biodiesel and renewable diesel. According to a research study by LMC International, SAF is more energy intensive to produce and saves fewer carbon emissions compared to renewable diesel. The organizations emphasize that imposing a top-down transition to a single technology could undermine the near-term emissions reductions potential of low-carbon options and harm the existing refueling landscape.
The Biden Administration is encouraged to harness the decarbonization benefits of renewable diesel and biodiesel in addition to incentivizing longer-term technologies. The preferred treatment of SAF for reducing transportation carbon emissions may lead to the elimination of the biodiesel and renewable diesel market as pressure is placed on feedstock. The trucking industry, which accounts for more than 80% of America’s goods delivery, heavily relies on biofuels like renewable diesel and biodiesel to significantly reduce carbon emissions. These fuels have proven their effectiveness in reducing greenhouse gas emissions, with biodiesel and renewable diesel eliminating 15 million metric tons of CO2 in California alone in 2020. By implementing strategies that promote equality between over-the-road and aviation renewable fuels, the Administration can lower fuel costs for trucking fleets and commercial drivers while achieving its goal of reducing transportation’s carbon footprint.
To ensure fuel market stability and advance the carbon footprint reduction target, one proposed strategy is subjecting SAF to more stringent lifecycle greenhouse gas emissions modeling requirements under tax credits. NATSO and SIGMA aim to establish parity between fuels derived from the same feedstock. Ultimately, they advocate for a balanced and inclusive approach that maximizes the potential of both near-term and long-term fuel technologies, leveraging their respective decarbonization benefits.
