The bill aims to enhance the production and utilization of low-to-zero carbon alternative jet fuel in Washington state by establishing clear tax incentives and regulatory frameworks. It mandates the Department of Ecology to create carbon intensity pathways for alternative jet fuel by December 31, 2023, and allows for the use of biomethane as a feedstock. The legislation emphasizes the role of alternative jet fuel in meeting the state's emissions targets and climate objectives, while also detailing how the carbon intensity of electricity for manufacturing facilities will be assessed 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 minimum production capacity of 20 million gallons per year. The credits are designed to incentivize lower carbon emissions, with specific calculations for credit amounts based on emissions reductions. The bill outlines the process for claiming these credits, requiring documentation and a carbon intensity score from the Department of Ecology. Notably, the credit amount increases with greater emissions reductions, and credits can only be claimed for alternative jet fuel, not for blended conventional petroleum jet fuel. The bill also stipulates that credits cannot be claimed until the Department of Ecology verifies the operational capacity of the facilities or until July 1, 2031, and includes provisions for the carryover of credits to the next calendar year.

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