Mihalick: ‘All of the above’ energy strategy includes sustainable aviation fuels
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Peter Mihalick
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By Peter Mihalick
Congress will set a new agenda for energy policy depending on which party wins the House, Senate and White House on Nov. 5. The party that wins must promote an “all of the above” energy strategy. This strategy needs to include biomass as part of the broadening of the energy sources for transportation — including aviation. One should not be surprised that America’s farmers are on the front lines of our nation’s push for energy independence.
Farmers tend to be conservative, given their need to preserve the viability of their resources. They are the hard-working residents of “fly-over” country who often feel ignored by politicians. Farmers are now in a position to help their country wean itself off imported fuel. Any strategy to lower energy prices would include more domestic energy production, including drilling, fracking and biofuels from farms. Fuels should be produced domestically.
The national security aspect of producing more energy domestically is hard to argue against. Our reliance on oil and gas imported from the Middle East is not sustainable. It leads to wild swings in prices because of the whims of the controlling cartel. A more stable domestic production would help stabilize prices while ensuring the American economy can’t be held hostage by foreign countries.
Recent advancements in biomass technology have positioned sustainable aviation fuel (SAF) as a leading solution for advancing America’s “all of the above” energy strategy. While the word “sustainable” is in the name, it’s essential to recognize this alternative to traditional jet fuel is not some environmental pipe dream. Made from agricultural feedstocks, SAF provides the most effective way for the aviation industry to meet growing fuel demands while reducing our reliance on foreign adversaries.
The most recent Farm Income Forecast from the Department of Agriculture’s Economic Research Service shows net cash farm income and total crop receipts have declined since 2022. This year, net cash farm income is expected to decrease by 25.8%, and crop receipts are expected to decrease by 6.3%, primarily because of lower receipts for corn and soybeans. Without additional revenue streams, we could see further declines in the number of farms, especially smaller and family-owned farms and agricultural income.
SAF creates good-paying jobs and economic opportunities for farmers and rural communities. With SAF’s reliance on renewable feedstocks like crops, plants, captured gases, or agricultural waste and debris, the growing demand provides farmers with revenue streams. This enables them to increase the value of their land and recover from financial hardships — and be less reliant on one particular commodity. By broadening their income sources, farmers can achieve greater economic security, safeguarding against market volatility and supporting the long-term success of rural America.
Enhancing SAF production bolsters energy independence, providing American companies with dependable, locally sourced energy. In the last 10 years, the U.S. has evolved into a net exporter of fossil fuels. This shift has enhanced our strength and resilience and decreased our dependency on overseas fuel suppliers. SAF has the potential to cut our reliance on imported oil.
Two years ago, Congress introduced temporary tax incentives to boost the production of SAF on a larger scale. While these initiatives are a good initial step, it’s crucial that Congress shifts its focus to long-term policies to secure a sustainable future for SAF. Without sustained and substantial incentives, the U.S. risks losing a critical chance to establish a robust domestic market.
To avoid this, Congress must expand and strengthen SAF tax credits and other long-term incentives to support its production, distribution and use. By providing comprehensive and long-term incentives, we can support innovation, boost domestic energy security, and create marketplaces through expanded production, all while supporting economic growth in rural communities.
It makes economic sense to broaden the sources of aviation fuels to strengthen national security while making good financial choices for the long-term health of the American economy.
Editor’s note: Peter Mihalick is a former legislative director and counsel to two Republican members of Congress. Reader reactions, pro or con, are welcomed at AzOpinions@iniusa.org.
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