Overview
- The proposal moving through the Legislature would pay fuel makers $1 to $2 for each gallon of sustainable aviation fuel that emits less carbon than standard jet fuel.
- The Department of Finance projects total credits of $165 million to $300 million over the program’s run from late 2027 through 2035.
- The Legislative Analyst’s Office told lawmakers the price tag could top $1 billion and recommended rejecting the plan.
- UC Berkeley economists and fuel retailers warn the subsidy would shift production toward jet fuel, squeeze diesel supply, and raise pump prices by 10 to 15 cents a gallon.
- Newsom’s administration says the incentive is key to cutting aviation emissions and supporting refinery jobs, pointing to similar programs in Washington and Illinois.