Congress determined more than a decade ago that making co-processed diesel at a conventional oil refinery does not generate the same economic, environmental and societal benefits as producing renewable diesel at a stand-alone, greenfield facility. Congress clarified in the new tax credit law that co-processed fuels – including SAF – are ineligible for incentives. The Treasury must follow Congress' intent.
While Congress specified the GREET model for measuring GHG emissions from transportation fuels, it also specified the ICAO model for SAF. The ICAO model contains outdated assumptions about the indirect emissions associated with U.S. crops that could unfairly exclude them from eligibility for tax credits. The GREET model is updated regularly. Treasury should specifically acknowledge the GREET model as a comparable substitute in final tax guidance.
Please ask your Representative and Senators to urge the IRS to follow congressional intent by excluding co-processing and supporting homegrown fuels.