California plans first-of-its-kind financial penalty on aviation fuel

By Anne C. Mulkern | 06/24/2024 06:21 AM EDT

Companies that supply aviation fuel would have to offset the carbon emissions by funding cleaner transportation fuel projects.

United Airlines airplane takes off at San Francisco International Airport.

A United Airlines airplane takes off at San Francisco International Airport. California plans to penalize all intrastate flights in a move to develop cleaner jet fuel. Jeff Chiu/AP

Every day, nearly 600 airline flights carry passengers between airports within California. It’s the nation’s largest intrastate aviation network — and now, it’s the target of a first-in-the-nation proposal to penalize the use of standard jet fuel.

California regulators are proposing to force jet fuel suppliers to invest in cleaner options through a policy aimed at expanding the supply of lower-emitting aviation fuels. The airline industry opposes the move.

A new mandate would require jet fuel suppliers to compensate financially for their greenhouse gas pollution by paying for emissions-reducing projects such as the production of cleaner jet fuel. Suppliers would have to compensate only for intrastate flights in California.

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“We want to see airlines using alternatives to conventional jet fuel in the state,” said Lys Mendez, a spokesperson for the California Air Resources Board, which is scheduled to consider a vote on the policy in November. Alternatives include fuels derived from waste fats and oils or other plant-based products.

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