The Farm Bill Is an Opportunity for Bold Action on Advanced Biofuels

by Mike McAdams (Advanced Biofuels Association/Real Clear Energy) More and more, agriculture and renewable energy production have become inexorably linked. Solar, wind, and biofuels have created new economic potential and horizons of opportunity for American farmers in the last two decades. This juncture comes into center spotlight in politics every five years when Congress takes up its “Farm Bill,” legislation that authorizes government programs at the Department of Agriculture (USDA).

The U.S. House of Representatives’ Committee on Agriculture recently marked up its draft 2024 Farm Bill, and Senate Democrats, led by Senate Agriculture Chairwoman Debbie Stabenow, have also released a detailed proposal. Both bills take steps to advance this promising new sector for American farmers – but both drafts could and should include bolder action to support America’s growing advanced biofuels industry given the opportunity to promote emissions reductions, energy security, and the competitiveness of American clean energy technology.

The original Farm Bill, passed in 1933 as part of the New Deal, aimed to relieve extreme financial uncertainty for farmers by creating price parity for crops. Today, it continues to provide economic stability for agricultural producers, but also much more – including setting important food and nutrition policy. With the growth of our domestic advanced biofuels sector, it has also become a valuable tool to support low carbon transportation fuels.

With the deadline approaching on this “must pass” legislation, Congress is working to advance a deal that can pass a divided Congress. Reaching agreement on a comprehensive piece of legislation that can win support from the Democrat-led Senate, Republican-led House, and ultimately be signed into law by President Biden is no easy task. Support for advanced biofuels is one area where there is meaningful opportunity for bipartisan cooperation that can push the bill beyond the status quo.

Indeed, past updates to the Farm Bill have driven significant energy innovation and security. The 1990 update included the Global Climate Change Prevention Act and the 2012 bill supported energy transition for feedstock production and infrastructure development. Yet, Congress’ 2024 bill markup so far suggests this year’s iteration may not significantly move the needle.

There are a few promising exceptions. One bipartisan amendment adopted by the House Agriculture Committee would create a strategy to advance sustainable aviation fuel (SAF) production, underscoring growing support from both Republicans and Democrats for SAF. Other changes in the current House bill would make the perennially popular REAP (Rural Energy for America Program) program more accessible for biofuels and extend authorizations for key funding programs.

These additions are excellent steps forward. Yet Congress could go even further by increasing funding for programs that are otherwise left flat. One withdrawn amendment would have offered grants to develop, construct, or retrofit pilot or demonstration-scale biorefineries to showcase advanced biofuels’ commercial viability. Another proposed amendment would have improved the U.S. Department of Agriculture’s (USDA) ability to fund promising SAF research and increase domestic SAF refining capacity.

Supporting amendments that promote clean energy and the American farmer is essential given the potential impact of tax credits to support renewable fuels as enacted by the Inflation Reduction Act (IRA). These funds could go even further to significantly boost the advanced biofuels industry, particularly in domestic SAF production, if afforded additional support in the Farm Bill.

Advanced biofuels are a crucial tool to achieve our climate ambitions and support rural America. As a grown-here drop-in fuel, they can bridge the electrification gap and begin reducing emissions on the road today. They can also lower emissions from heavy shipping transportation vehicles like planes, marine vessels, and trucks that are essential to our economy. We need an all-of-the-above strategy to combat climate change, of which the Farm Bill is a key pillar.

Historically, the Farm Bill has considered energy security during periods of global instability. Advanced biofuels can help alleviate pressure on America’s energy supply portfolio amid a backdrop of geopolitical unrest and unreliable international energy partnerships. By adopting common-sense provisions on advanced biofuels when the Senate takes up the bill in Committee, Congress could meaningfully advance proven solutions to improve U.S. energy security.

Congress has taken steps on a bipartisan basis to support the energy transition and farmers’ economic opportunities with this Farm Bill. Bolder action is possible and should be Congress’ undertaking as this package advances to floor consideration and toward the President’s desk in the months to come. READ MORE

Predictably, both bills include continued support for biofuels, framing the importance of biofuels as both critical for energy security and as a key transition fuel as systems are weaned off fossil-fuels. Both bills continue support for programs such as the BioPreferred Program and the Higher Blends Initiative. Additionally, the House bill includes a strategy to advance sustainable aviation fuel production. READ MORE