AB 481 — Establishes the Sustainable Aviation Fuel Incentive Program. (BDR 44-1095)

EXEMPT (Reprinted with amendments adopted on April 18, 2025) FIRST REPRINT A.B.

Section 3 of this bill creates the Sustainable Aviation Fuel Incentive Program to provide incentives of money to domestic air carriers for the purchase of sustainable aviation fuel produced in this State.

The interest and income earned on the money in the Fund must, after deducting any - *AB481**AB481_R1* – 2 – applicable charges, be credited to the Fund.

The Sustainable Aviation Fuel Incentive Program is hereby created for the purpose of providing incentives of money for the purchase of sustainable aviation fuel produced in this State.

A domestic air carrier based in the United States is eligible to receive from the Program for the purchase of sustainable aviation fuel produced in this State an incentive:incentive of $2.50 per gallon.

(a) Of $1.75 per gallon for the purchase of sustainable aviation fuel produced outside of this State;

and (b) Of $2.50 per gallon for the purchase of sustainable aviation fuel produced in this State.

- *AB481* – 3 – (b) In Employers Insurance Company of Nevada v.

249, 258 (2001), the Nevada Supreme Court held that the State loans its credit in violation of Section 9 of Article - *AB481_R1* – 3 – 8 of the Nevada Constitution only when “the State acts as a surety or guarantor for the debts of a company, corporation or association.” (c) In Lawrence v.

(2) Give great weight and due deference to the Legislature’s finding, and the courts will uphold the Legislature’s “finding unless - *AB481* – 4 – it clearly appears to be erroneous and without reasonable foundation;” and (3) Closely examine whether the dispensing state agency reviews all facts, figures and necessary information when making - *AB481_R1* – 4 – the dispensation, and when the state agency has done so, it will not be second-guessed by the courts.

- *AB481* – 5 – (1) Developing the market and industry for sustainable aviation fuel in this State and promoting jobs and businesses in this State in the sustainable aviation fuel industry;

and - *AB481_R1* – 5 – (2) Reducing greenhouse gases emitted by domestic air carriers that operate in this State, specifically emissions occurring on takeoff and landing at airports in this State.

(d) The protection and preservation of the natural resources of this State by incentivizing the purchase of sustainable aviation fuel is an important public purpose which will limit the emissions of greenhouse gasses from air carriers operating in this State and thus lower the contributions air travel in this State make to climate change, which threatens the health, safety and welfare of the residents of this State and the economy of this State.

of the (e) The provisions of this act are intended to serve an important public purpose and ensure that the State receives valuable benefits and fair consideration in exchange for each incentive of money from the program because:

H - *AB481**AB481_R1*