US airlines back ethanol industry position on aviation fuel credit

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WASHINGTON - Major U.S. airlines and aviation companies joined ethanol companies to send a letter to the Biden administration on Wednesday backing a regulatory change that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for federal subsidies.

Airlines including Delta , JetBlue , and Southwest , and companies like GE Aerospace and Boeing , said in the letter to Treasury Secretary Janet Yellen that the administration should allow the use of the Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies model in addition to the one developed by ICAO, echoing a request from the ethanol industry.

Environmental groups argue, however, that the GREET model underestimates ethanol's emissions, particularly those associated with clearing land to grow the crops required to make ethanol. The letter comes the same day Biden and his administration kick off a two-week focus on rural America, starting with a visit to Minnesota on Wednesday.

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