IRA Section 40007 – Sustainable Aviation Fuel Grant Program

Section 40007 of the IRA appropriates the following amounts to the Department of Transportation (“DOT”) to fund competitive grants for projects located in the U.S. that produce, transport, blend, or store sustainable aviation fuel, or develop, demonstrate, or apply low-emission aviation technologies:

1) $244,530,000 for projects relating to the production, transportation, blending, or storage of sustainable aviation fuel;
2) $46,530,000 for projects relating to low-emission aviation technologies;
3) $5,940,000 to fund the award of grants under this section, and oversight of the program, by the Department of Transportation.

When issuing grants, DOT must consider:

1) the capacity of the entity receiving the grant to increase the domestic production and deployment of sustainable aviation fuel or the use of low-emission aviation technologies among the U.S. commercial aviation and aerospace industry;
2) the projected greenhouse gas emissions from the project, including emissions resulting from the development of the project, and the potential the project has to reduce or displace, on a lifecycle basis, U.S. greenhouse gas emissions associated with air travel;
3) the project’s capacity to create new jobs and supply chain partnerships in the U.S.;
4) for projects related to the production of sustainable aviation fuel, the projected lifecycle greenhouse gas emissions benefits from the proposed project; and
5) the benefits of ensuring a diversity of feed stocks for sustainable aviation fuel, including the use of waste carbon oxides and direct air capture.

The federal share of project costs must generally be 75% of the total. However, if the entity receiving the grant is a small hub airport or non hub airport, the federal share must be 90% of the total project cost.

The funds appropriated under section 40007 shall remain available until September 30, 2026.