4AIR PolicyWatch
Providing business aviation with visibility into upcoming environmental legislation
4AIR PolicyWatch
Stay ahead of emerging legislation that may affect your operations or impact your clients and their reporting.
*Last updated 2/05/2024
| Title | Legislation Effect | Last & Next Update | Summary – What is it? | Applicability – Who Does it Impact? | Status | Link |
|---|---|---|---|---|---|---|
| Securities & Exchange Commission (SEC) Environmental Footprint Reporting | The first disclosures will be due in 2026 for Fiscal Year 2025 reporting (depending on entity size). | Passed: On March 6, 2024 | The Securities & Exchange Commission (SEC) passed a rule mandating that public companies report elements of their environmental footprint, including Scope 1 and 2 emissions, if material. Additionally, some companies will have to disclose the financial impacts of severe weather, carbon offsets, and other climate factors. | The rule applies to all public companies, including non-US firms with shares traded in the US. Within the realm of aviation, this would directly affect corporate flight departments and managed aircraft that serve as direct assets for large public companies. Indirectly, it may also impact any aviation company serving a customer that opts into supply chain reporting requirements. | ENACTED The rule was adopted by the SEC on March 6, 2024. | Final rule: The Enhancement and Standardization of Climate-Related Disclosures for Investors AGENCY: Securities and Exchange Commission |
| California SB 253, Climate Corporate Data Accountability Act and California SB 261, Climate-Related Financial Risk Act Accountability Act | 1-Jan-2026 | Signed on October 7, 2023 – Expecting additional guidance in 2024. | California passed new rules (SB253 and SB 261) imposing climate reporting requirements on large companies doing business within the state. This would include the disclosure of Scope 1, 2, and 3 emissions and require climate risk disclosures. | The bill applies to businesses, including aircraft operators, with total annual revenues more than $500 million, and that do business in California. Indirectly, this will impact any aviation company serving a customer subject to these reporting requirements. | ENACTED Both regulations were officially signed by the Governor and came into effect on October 7, 2023. | Bill Text - SB-253 Climate Corporate Data Accountability Act. Bill Id: 202320240SB253 (ca.gov) and Bill Text - SB-261 Greenhouse gases: climate-related financial risk. Bill Id: 202320240SB261 (ca.gov) |
| California AB1305 The Voluntary Carbon Market Disclosures Act | 1-Jan-2024 | Signed on October 7, 2023 | AB1305 imposes multiple disclosure requirements on companies making claims related to net-zero, carbon neutrality, or similar assertions, even when utilizing voluntary carbon offsets. There are more stringent disclosure requirements for carbon offset sellers. | These disclosure requirements would impact business aircraft operators that make net-zero or carbon neutrality claims through the use of voluntary carbon offsets. The text as currently written would impact any company doing business within the state, or that sells to California customers. | ENACTED Approved by the Governor on October 07, 2023 | Bill Text - AB-1305 Voluntary carbon market disclosures. |
| EU Corporate Sustainability Reporting Directive (CSRD) | 2025 (For earliest compliance) | Last Update: January 5, 2023 | Like the SEC, the EU Corporate Sustainability Reporting Directive (CSRD) is a legislation that requires all large companies and listed SMEs in the European Economic Area to publish regular reports on their environmental and social impact activities. This includes disclosure of Scope 1, 2, and 3 emissions and climate risks if deemed material. | Public companies with more than 500 employees as well as private organizations that meet 2 of the following 3 criteria: a) > 250 employees, b) >€40M in revenue, c) or >€20M in assets.Companies with prior reporting requirements under NFRD will be required to report FY2024 in 2025, with smaller or new companies having reporting obligations in later years.Indirectly, this will impact any aviation company serving a customer subject to these reporting requirements. | ENACTED The CSRD came into effect in January 2023. Reports must adhere to the European Sustainability Reporting Standards (ESRS), which were officially adopted on July 31, 2023. | Corporate sustainability reporting (europa.eu) |
| UK SECR – Streamlined Energy and Carbon Reporting | Beginning on April 1st, 2019, and continuing each subsequent financial year. | Last Update: April 01, 2019 | Similar to the SEC, the United Kingdom (UK) Streamlined Energy and Carbon Reporting (SECR), will be refining rules for a new reporting mechanism for certain public and private companies to report Scope 1 and 2 emissions of their operations. | All publicly listed companies and private organizations that meet 2 of the following 3 criteria: a) > 250 employees, b) >£36M in revenue, c) or >£18M in assets; and are also registered in the UK. Indirectly, this will impact any aviation company serving a customer subject to these reporting requirements. | ENACTED 4/1/2019 | The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (legislation.gov.uk) |
| ReFuelEU Aviation Regulation | March 31, 2025, for the reporting period of the year 2024. | Last Update: Enacted on October 9, 2023 | The regulation mandates that fuel suppliers distribute a progressively higher minimum proportion of SAF to major EU airports over time, aiming to boost its adoption by airlines and consequently mitigate emissions from aviation. Additionally, it prohibits tankering as a mechanism to avoid uplifting SAF and imposes reporting requirements on operators to report regular fuel and SAF uplifts at major “Union” airports. | All aircraft operators (including those based outside of the EU) conducting over 500 flights per year from Union airports (larger EU airports) must report information related to fuel uplifted. | ENACTED The RefuelEU Aviation Regulation was adopted by the Council of the EU on October 9, 2023 | ReFuelEU Aviation (europa.eu) |
| EU ETS Aviation Revision | 1-Jan-2024 | Last Update: Enacted on May 16, 2023 | 1.From 2024: Free emission allowances will be reduced by 25% in 2024, 50% in 2025 and 100% from 2026, with all allowances fully auctioned from 2026. 2. From 2024: The yearly Emissions Allowances surrender deadline is changed from 30 April to 30 September. 3. From 2024: New emission factor for kerosene: 3.16 tCO2/t fuel. 4. From 2025: Aircraft operators are required to submit annual reports on non-CO2 aviation effects, including oxides of nitrogen (NOx), soot particles, oxidized sulfur species, and effects resulting from water vapor, such as contrails. 5. From 2025: Flights from the Outermost Region of one Member State to a different Member State will be subject to reporting requirements. | All aircraft operators included in the EU ETS reporting scheme. | ENACTED The EU Directive 2023/958 and 959 was enacted on May 10, 2023. | EUR-Lex - L:2023:130:TOC - EN - EUR-Lex (europa.eu) |
| UK ETS Aviation reform | Proposed for 2024 | Last Update: July 3, 2023 | UK ETS Authority has announced the phasing out of aviation free allocations by 2026. Free allocation entitlement will be retained until 2026, with a gradual transition period starting in 2024 and 2025 to assist aircraft operators in preparation. | All aircraft operators included in the UK ETS reporting scheme. | PROPOSED The package of UK ETS reforms was announced by the UK Emissions Trading Scheme Authority in July 2023. | Tighter limit on industrial, power and aviation emissions, as UK leads the way to net zero - GOV.UK (www.gov.uk) |
| UK ETS Reporting Service | 31-Jul-2023 | Last Update: July 31, 2023 | The UK METS portal, also known as the “Manage your UK Emissions Trading Scheme Reporting Service”, is a new system for managing the UK Emissions Trading Scheme (UK ETS). | Aircraft operators included in the UK ETS reporting have been invited to create their accounts with METS and undergo the onboarding process as users. | Non-legislative modification of the reporting procedure, shifting from ETSWAP to the METS system. | EUETS - Logon (environment-agency.gov.uk) |
| US Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk | One year after publication of a final rule. | Last Update: November 14, 2023 | DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement a requirement to ensure certain Federal contractors disclose their greenhouse gas emissions and climate-related financial risk and set science-based targets to reduce their greenhouse gas emissions. | Certain federal contractors, including aircraft operators, will be required to disclose their greenhouse gas emissions and climate-related financial risks, as well as set science-based targets to reduce their greenhouse gas emissions. | PROPOSED The rule is in the “proposed” stage, meaning it has not yet been finalized or put into effect. It’s currently undergoing a process of public comment and review. | Federal Register: Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk |
| Illinois State SAF Tax Credit | July 1, 2023, through December 31, 2032. | Last Update: The Illinois State SAF Tax Credit was enacted as part of the Invest in Illinois Act. The bill was signed into law by the Governor on February 3, 2023. | The Illinois State Sustainable Aviation Fuel (SAF) Tax Credit is a program that provides a tax credit of $1.50 per gallon for SAF used by aircraft in the state. The credit applies to every gallon of SAF sold to or used by an “air common carrier” in Illinois from June 1, 2023, to June 1, 2033. The SAF must reduce carbon emissions by at least 50% throughout its life to qualify for the credit. The credit applies to all SAF used in Illinois, regardless of where it is produced. | Sustainable Aviation Fuel Purchase Credits (SAFPC) are available to “air common carriers” that purchase or use sustainable aviation fuel (SAF) within Illinois, provided that the SAF meets specific criteria. | ENACTED SAFPC was enacted as part of the Invest in Illinois Act. The bill was signed into law by the Governor on February 3, 2023. | Aviation Fuel Sales and Use Tax (illinois.gov) |
| CORSIA | 1-Jan-2024 | Last Update: In October 2022, the 41st ICAO Assembly approved changes to the CORSIA program. | With a resolution A41-22 countries agreed on a new CORSIA baseline from 2024 onwards, defined as 85% of CO2 emissions in 2019, and on revised percentages for the sectoral and individual growth factors to be used for the calculation of offsetting requirements from 2030. | All aircraft operators subject to CORSIA reporting obligations must offset emissions from international flights between participating states. With an updated baseline established at 85% of 2019 CO2 emissions, operators will have offsetting requirements from the First Phase (2024-2026) onwards. | ENACTED ICAO members approved changes to the CORSIA program at the 41st ICAO Assembly in October 2022. | https://www.icao.int/environmental-protection/CORSIA/Documents/Resolution_A41-22_CORSIA.pdf |
| EU Green Claims Directive | After enactment, member states have 24 months to adopt the new rules, likely taking effect around 2026. | Last Update: On September 19, 2023, EU Parliament and Council reached a provisional agreement on the Directive. The vote is expected to take place in March 2024. | The EU directive on the verifiability and communication of environmental product claims (Green Claims Directive) is intended to create transparency and give consumers the certainty that something that is advertised as environmentally friendly actually is. Consumers should be able to make informed purchasing decisions on the basis of comprehensible information. | The proposed requirements cover the majority of EU companies and non-EU companies targeting EU consumers, including aircraft operators. However, micro-SMEs, defined as companies with fewer than 10 employees or generating less than €2 million in annual turnover, will be exempt from these rules. Aircraft operators will need to substantiate and present their environmental claims in accordance with regulated guidelines. The directive prohibits broad environmental assertions such as 'environmentally friendly' or 'climate neutral' unless supported by evidence demonstrating outstanding environmental performance specific to the claim. Furthermore, it prohibits claims based on emissions offsetting schemes that suggest a product or service has a neutral, reduced, or positive environmental impact without sufficient evidence to support such claims. | PROPOSED The Directive is set for the vote in the joint committee in February 2024. The file would then go to plenary in March 2024. However, these dates are yet to be confirmed. After enactment, EU member states have 24 months to implement these rules. | https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2023%3A0166%3AFIN |
| California Low Carbon Fuel Standard Regulation (LCFS) 2024 Amendment | Proposed for 2024 | Last Update: The hearing date for the proposed 2024 Amendment is scheduled for March 21, 2024. | CARB has put forth amendments to the California low-carbon fuel standard with the goal of additional reductions in greenhouse gas emissions within the transportation sector. Essential aspects of the amendments involve monitoring the origin of biofuel feedstocks and mandating independent certification to mitigate impacts on carbon stocks. Additionally, the proposal eliminates the LCFS exemption for intrastate fossil jet fuel starting in 2028. | The proposed amendments to the LCFS program are set to affect the entire aviation industry, but particularly those operating intrastate flights. Approximately 10% of California's jet fuel consumption, which is attributed to intrastate flights, would generate deficits under the LCFS program, increasing costs starting in 2028. However, the addition of new deficit-generators should increase the value of the LCFS credits, decreasing the cost of SAF. | PROPOSED The public comment period for this regulatory action is between January 5 and February 20, 2024. A public hearing for the proposed 2024 Amendment is set for March 21, 2024. | https://ww2.arb.ca.gov/rulemaking/2024/lcfs2024 |
| Rotterdam The Hague Airport SAF Mandate | 1-Jan-2024 | Last Update: On November 16th, 2023, Shell and Rotterdam The Hague Airport (RTHA) signed a long-term agreement to blend SAF on all aircraft fuelled at the airport, starting in 2024. | In addition to the European ReFuelEU blending mandate of 6% by 2030, Rotterdam The Hague Airport (RTHA) is intensifying its efforts to achieve the Dutch aviation sector's more ambitious goal of 14% sustainable aviation fuel (SAF) by 2030. While the ReFuelEU regulation mandates Union airports to reach a 2% SAF blend by 2025 and 6% by 2030, RTHA aims to surpass these requirements by establishing a minimum extra target of 2% starting in 2024. The airport plans to incrementally increase this target by at least one percentage point each year until 2030, ensuring a total additional increase of at least 8 percentage points beyond the mandatory 6%. | Commencing with the 2024 2% Sustainable Aviation Fuel (SAF) mandate, this initiative is relevant to all aircraft operators refuelling at the airport. Business operators are reportedly subject to higher mandates than commecial aviation. | CONFIRMED | https://www.rotterdamthehagueairport.nl/en/rotterdam-the-hague-airport-accelerates-sustainable-fuel-blending/ |
| Hawaii SB2768 SD1 HD1, Clean Fuel Standard | Proposed for 2026 | Last Update: March 6, 2024 | Hawaii state Senate passed a bill mandating the creation of a clean fuel standard, which would set decreasing carbon intensity targets for certain covered transportation fuels against a set baseline, coupled with a credit market. | The credits market allows businesses from any sector that measurably reduces greenhouse gas emissions in the transportation fuel supply chain to generate valuable credits that can be sold. However, details of the clean fuel standard have yet to be clarified and approved by the Hawaii House of Representatives. If this standard follows suit with others (California, Washington, Oregon), it is expected that sustainable aviation fuel would qualify to generate credits, lowering the green premium there. | PROPOSED The bill is in the “proposed” stage, meaning it has not yet been finalized or put into effect. The bill was passed by the Hawaii State Senate on March 6, 2024, and now heads to the House of Representatives. | Measure Status (hawaii.gov) |
| New Mexico HB41, Clean Fuel Standard | 1-Jul-2026 | Passed: On March 5th, 2024 | New Mexico passed a law establishing a clean fuel standard, setting annually decreasing carbon intensity targets for certain covered transportation fuels against a set baseline coupled with a credit market. The New Mexico Environmental Improvement Board (NMIB) will be tasked with creating program rules and implementation. | The credits market allows businesses from any sector that measurably reduces greenhouse gas emissions in the transportation fuel supply chain to generate valuable credits that can be sold, but the details of the clean fuel standard have yet to be set in stone by the NMIB. It is expected that sustainable aviation fuel would qualify to generate credits, potentially stimulating production in New Mexico and lowering the green premium there. | ENACTED The House Bill was signed into law by the Governor on March 5, 2024. | FACT SHEET: Clean Fuel Standard 1.20 (nm.gov) |
| Portuguese Carbon Tax | June, 2023 | Last Update: The tax was initially launched on July 1, 2021, impacting passengers on commercial flights. The order revision on July 1, 2023, expanded the tax scheme to include business jet flights. | The Portugal Carbon Tax is levied on all commercial and non-commercial flights departing from Portuguese territories. Exemptions include emergency diversions, fully electric aircraft, Public Service Obligation (PSO) flights on government-subsidized routes, state-owned aircraft, and search-and-rescue and medical evacuation flights. The Portuguese ANAC Agency oversees tax administration, ensuring compliance through flight data verification and inspections. | For flights on aircraft with a seating capacity of 19 or below, the tax is calculated using a formula based on the pollution coefficient, seating capacity, and distance travelled. | ENACTED | Link |
Note: This list of regulations here only reflects upcoming regulations that may affect business aviation operators; however, it is not exhaustive and should not be treated as legal guidance.
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