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US Congress eyes biofuels in farm bill push

  • Mercados: Biofuels, Biomass
  • 08/07/26

The US Congress is set to resume legislative work next week, including on two competing farm policy packages that contain multiple provisions to support the biofuels industry.

Senate agriculture committee chair John Boozman (R-Arkansas) on 23 June released an initial discussion draft of what he calls a bipartisan "Farm Bill 2.0", which would fund agriculture and food programs through 2031.

The Senate draft borrows biofuel provisions similar to those in the House farm bill, known as the Farm, Food, and National Security Act of 2026.

The House of Representatives passed its farm bill, HR 7567, in a 224-200 vote on 30 April and sent it to the Senate, which has yet to act on the bill after receiving it in May.

Both bills include a specific focus on promoting and supporting sustainable aviation fuel (SAF).

US agriculture secretary Brooke Rollins (R) would establish a "department-wide" strategy to advance SAF production under both proposals, focusing on supply chain development, maximizing deployment and commercialization and promoting public-private partnerships, among other activities.

SAF production would also qualify for federal support under the US Department of Agriculture's (USDA) biorefinery assistance and advanced biofuel payment programs in both versions of the farm bill.

The USDA biorefinery assistance program provides loan guarantees to help develop, build or retrofit commercial-scale biorefineries that produce advanced biofuels. The House version would raise the maximum principal for guaranteed loans to $400mn from $250mn.

The Senate version would establish grants of up to $10mn for developing, building or retrofitting biorefineries to convert renewable biomass into biofuels, renewable chemicals and SAF, among other activities.

The bills would also extend both programs, and the Feedstock Flexibility Program, through 2031.

The Biomass Crop Assistance Program, under the USDA's Farm Service Agency, would also be extended to 2031 under both bills. It provides funding to farmers to offset costs for growing eligible biofuel feedstocks for local biorefineries.

The House version would repeal two programs — the Biodiesel Fuel Education program and the Carbon Utilization and Biogas Education program. The Senate draft would extend both program through 2031.

But despite provisions with "broad appeal on both sides of the aisle", the newest farm bill is lacking in two areas, according to Renewable Fuels Association president Geoff Cooper.

Neither bill allocates funding for a USDA program intended to boost sales of higher ethanol and biodiesel blends, which the agency says is out of funds absent new appropriations.

And neither farm bill proposes removing summertime limits on sales of gasoline with a 15pc ethanol blend, a top priority for corn growers and ethanol advocates.

The House passed reforms to the Clean Air Act in May allowing for year-round sales of gasoline containing up to 15pc ethanol (E15). The legislation now sits in the Senate where it faces an unclear path forward.

Farm bills have historically provided about five years of program funding. The most recent farm bill, the Agricultural Improvement Act of 2018, expired in 2023. Congress has passed three one-year extensions since then.


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