The bill aims to enhance the development and utilization of low-to-zero carbon alternative jet fuel in Washington state by clarifying tax incentives for production. It establishes a new section that underscores the significance of alternative jet fuel in meeting state emissions targets and climate objectives. The legislation requires the Department of Ecology to permit carbon intensity pathways for alternative jet fuel by December 31, 2023, and includes provisions for using biomethane as a feedstock. Furthermore, it specifies that the carbon intensity of electricity supplied to alternative jet fuel manufacturing facilities will be determined based on existing contracts and utility disclosures.

Key amendments include the introduction of tax credits for manufacturers and users of alternative jet fuel, contingent upon the operation of facilities with a cumulative production capacity of at least 20 million gallons per year. The tax rate for manufacturers and sellers is set at 0.275 percent, with credits available for fuels meeting specific carbon reduction benchmarks. The bill outlines the process for claiming these credits, which includes verifying production capacity and submitting documentation electronically. Additionally, the credit amount increases by 2 cents for each additional one percent reduction in emissions beyond a 50 percent threshold, with a maximum limit of $2 per gallon. The bill also establishes conditions for claiming credits, including verification by the Department of Ecology and a timeline for earning credits.

Statutes affected:
Original bill: 70A.535.150, 82.04.287, 82.04.436, 82.32.534