Nevada lawmakers are considering a new bill that would create a financial incentive for the use of sustainable aviation fuel (SAF) produced within the state. The legislation, Assembly Bill 481 (AB 481), proposes offering $2.50 per gallon to domestic airlines that purchase and use Nevada-made SAF, reports Biodiesel Magazine.
Originally introduced on March 24, the bill has undergone revisions. The initial draft included a two-tier system, with a $1.75 incentive for SAF produced outside Nevada and $2.50 for fuel made in-state. However, the current version, discussed during a May 31 hearing of the Assembly Ways and Means Committee, limits the incentive only to SAF both produced and used in Nevada.
To be eligible, the SAF must meet the same standards that were outlined in the now-expired federal 40B SAF tax credit. This ensures that the fuel meets specific environmental and production criteria.
In addition to setting up the incentive program, the bill would allocate $10 million to a dedicated fund to support and manage the initiative.
Supporters say the bill aims to promote local clean fuel production, reduce aviation emissions, and position Nevada as a leader in sustainable energy for air travel. A full version of the legislation can be found on the Nevada Legislature’s website.