The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Specifically, we estimate that the proposed tax credit alone implies a carbon price of over $170 per metric ton of carbon dioxide equivalent. (That is, if all the estimated carbon emission reductions from each gallon of SAF are attributed exclusively to the proposed policy, we estimate that the cost per met ric ton for these reductions would be over $170.)
https://lao.ca.gov/Publications/Report/5139