Sustainable Aviation Fuel
As part of the strategic intent codified
within the Department of Homeland Security (DHS) Climate Framework, and various supporting component strategies,
the Department has committed to procuring sustainable aviation fuel (SAF), and
eventually sustainable marine fuels (SMF).
If eligibility requirements are met, subject
to availability of funds, DHS will utilize Inflation Reduction Act (IRA)
appropriated funds to facilitate an additional payment to the supplier for
successful deliveries of SAF to any DHS component. At this time, up to $2
million has been allocated to accelerate DHS’s
operational energy transition for obligation through fiscal year (FY) 2028. DHS
does not expect funding to be a constraint through FY 2028; however, should
there be a demand in excess of $2 million, DHS would consider requesting
additional funds be made available for additional SAF procurements, either to
sustain consumption of SAF at contract awarded locations, or to expand the
number of DHS locations receiving SAF blends.
The total payment to a supplier will therefore
be the sum of two payments:
1.
A payment to the supplier for the current
commodity contract price;
2.
A payment to the supplier, only
upon receipt of the quantity of delivered blend, identification of the U.S.
produced feedstock from which the sustainable component was produced, and the
blend rate, in the amount equal to the successful bidder’s total
gallon price, minus payment 1 above.
For more information about the White House SAF Grand challenge,
or the Inflation Reduction Act tax incentives for SAF and Sustainable Marine
Fuels (SMF) visit Transportation Biofuels |
Department of Energy.