State representatives are moving forward with measures to bolster clean and alternative fuels.
House Bill 1694 creates a tax credit to encourage the production of sustainable aviation fuel, a lower-carbon alternative to conventional jet fuel.
If the measure is adopted, distributors of sustainable aviation fuel could get up to $2 back per gallon of fuel sold in the state. The credit is capped at $20 million.
Jacob Aki testified in support of the measure on behalf of Hawaiian and Alaska airlines in a Thursday hearing before the House Energy and Environmental Protection Committee.
He said that the tax credit could help spur local production of sustainable aviation fuel, which is made from non-petroleum feedstocks like plant oils and used cooking oils.
Right now, Aki said the barrier to broader adoption of sustainable aviation fuel by airlines is cost.
“It's more expensive to produce [sustainable aviation fuel] than it is to produce conventional jet fuel. To really make it feasible for us to use SAF, it needs to be at a rate that is comparable to conventional jet fuel,” he said.
Several environmental groups oppose HB 1694, saying that Hawaiʻi has insufficient land and water to grow meaningful amounts of feedstock for sustainable aviation fuels.
Aki acknowledged local production of sustainable aviation fuel would likely only be able to meet 10% of the airline industry’s demand.
House Bill 1695 also proposes incentives for sustainable aviation fuel. House Bill 1986 would establish a clean fuel standard that promotes the adoption of low-carbon fuels throughout the transportation sector.
All three measures have until March 3 to be scheduled for a hearing in the House Finance Committee.
