Sec. 5. Low carbon aviation fuel standard
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Section 211 of the Clean Air Act ( 42 U.S.C. 7545 ) is amended by adding at the end the following: In this subsection: The term aviation fuel means fuel that is produced, sold, or dispensed in the United States, for civil or military purposes, for turbine-powered aviation. The term carbon intensity means the quantity of lifecycle greenhouse gas emissions per unit of fuel energy. The term credit exchange means a central marketplace with established rules and regulations where buyers and sellers meet to conduct trades.
The term fuel standard means the low carbon fuel standard established under paragraph (2). Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations to establish a low carbon fuel standard for aviation fuels that requires a reduction in carbon intensity for aviation fuels each calendar year such that by 2050, and thereafter, the average carbon intensity of all aviation fuel used annually in the United States is reduced by at least 50 percent, as compared to the average carbon intensity of all aviation fuel used in the United States in 2005.
In promulgating regulations under paragraph (2), the Administrator shall set a target of a reduction of at least 20 percent in the average carbon intensity of all aviation fuel used annually in the United States by 2030, and of at least 50 percent by 2050, as compared to the average carbon intensity of all aviation fuel used in the United States in 2005. In promulgating regulations under paragraph (2), the Administrator shall— establish a benchmark for the average carbon intensity of aviation fuels for each calendar year, beginning with the first full calendar year that begins 2 years after the date of enactment of this subsection, suitable to achieving the targets specified in paragraph (3); apply the fuel standard to persons who produce or import aviation fuel; establish procedures for calculating the carbon intensity of an aviation fuel, expressed in grams of carbon dioxide equivalent per megajoule, in accordance with— the standards, recommended practices, requirements and criteria, supporting documents, implementation elements, and any other technical guidance for sustainable aviation fuels that are adopted by the International Civil Aviation Organization with the agreement of the United States; and any other more stringent accounting practices determined by the Administrator to be the best lifecycle greenhouse gas emission accounting practices, provided that such practices account for the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes), as determined by the Administrator, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential; determine how long the calculation of the carbon intensity of an aviation fuel (pursuant to the procedures established under subparagraph (C)), will remain in effect before needing to be reevaluated; allow a person described in subparagraph (B), who, for a calendar year, produces or imports aviation fuel— that has an average carbon intensity that is less than the benchmark for average carbon intensity for that calendar year to, except as provided in paragraph (8), generate credits, to be used, or transferred to another person, to demonstrate compliance with this subsection; and that has an average carbon intensity that is greater than the benchmark for average carbon intensity for that calendar year to purchase credits to be used to demonstrate compliance with this subsection; determine the— appropriate amount of credits generated and used to demonstrate compliance pursuant to subparagraph (E); and appropriate conditions, if any, on— the duration of such credits; and the transfer such credits through a credit exchange; and consult with all relevant stakeholders, including aviation industry groups, renewable fuel industry groups, researchers at institutions of higher education, labor unions, consumer advocates, and any other stakeholders the Administrator determines to be appropriate.
In carrying out this subsection, the Administrator shall consult with the Administrator of the Federal Aviation Administration, the Secretary of Energy, and the Secretary of Agriculture. The Administrator shall, after notice and opportunity for public hearing, waive application of the fuel standard in any State that has adopted a standard for aviation fuels that the Administrator determines is at least as stringent as the fuel standard. If Congress enacts a standard or similar law that the Administrator, in consultation with the Administrator of the Federal Aviation Administration, determines accomplishes the purposes of the fuel standard for sectors of the economy that include the aviation sector, the Administrator may revoke the fuel standard in favor of the other standard or law.
No credit may be generated under this subsection with respect to renewable fuel for which a credit is generated under subsection (o). Not later than 180 days after the date of enactment of this subsection, the Administrator shall submit to Congress and make publicly available a report describing— the status of the development of the fuel standard; and the considerations the Administrator is using in developing the fuel standard. . Section 211(d) of the Clean Air Act ( 42 U.S.C. 7545(d) ) is amended— in paragraph (1)— by striking or
(o)of this section or the regulations and inserting (o), or
(w)of this section or the regulations ; by striking or
(o)of this section or who fails and inserting (o), or
(w)of this section or who fails ; and by striking or
(o)of this section which establishes and inserting (o), or
(w)of this section which establishes ; and in paragraph (2), by striking and
(o)of this section each place it appears and inserting (o), and
(w)of this section .
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Sec. 5
Low carbon aviation fuel standard
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