Sources: The Biden administration is set to delay the release of guidelines on aviation fuel subsidies until December

It has come to light that the Biden administration is considering delaying its verdict on whether or not sustainable aviation fuel produced from corn-based ethanol will be eligible for subsidies under the White House's climate law. The decision has sparked a division within the administration, with U.S. 


Farm Belt stakeholders advocate for the inclusion of such fuel, while environmental groups argue that cultivating crops for fuel would be detrimental to the fight against climate change. 


The administration has yet to make an official statement regarding the matter, but it was disclosed in August that John Podesta, a senior adviser on clean energy, was tasked with resolving the issue. As per the Inflation Reduction Act, producers of such fuel must establish that their product generates 50% less greenhouse gas emissions over its lifecycle than petroleum fuel. 


Ethanol producers in the Midwest are pushing for ethanol-based SAF to be included, whereas environmentalists prefer inputs like used cooking oil and animal fat. The verdict of the administration will determine who benefits from the subsidies anticipated under the program, which had a verdict expected by September.


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