Competing US farm bill drafts boost SAF

Market: Agriculture, Biofuels, Emissions, Oil products
12/06/24

Republicans and Democrats say they still have work to do to negotiate a final agreement around this year's US farm bill, although proposals from both parties include provisions to boost production of sustainable aviation fuel (SAF).

Senator John Boozman (R-Arkansas) released the latest proposal on Tuesday, which represents the view of the minority Republicans on the Senate Committee on Agriculture, Nutrition, and Forestry. The bill clarifies that SAF is an eligible technology under a federal program that offers loan guarantees for the construction and retrofitting of biorefineries.

Similar language appeared in the Republican-backed farm bill draft that passed the House Committee on Agriculture last month and in Senate committee chair Debbie Stabenow's (D-Michigan) Democratic-backed farm bill framework. The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program currently offers support to producers of "advanced biofuels," a category that does not explicitly include alternative jet fuels and specifically limits fuels derived from corn starch.

A revised definition of "advanced biofuels" could also allow SAF to benefit from other US Department of Agriculture (USDA) programs, including one that pays companies to expand production of renewable fuels.

Corn growers and ethanol producers, which could benefit from Inflation Reduction Act tax credits for low-carbon fuels, are among the groups calling for the farm bill to include such SAF provisions. The White House has set a 2030 goal for US SAF production to reach at least 3bn USG/yr (200,000 b/d), although the types of fuels that can qualify for federal support are still up in the air. Some environmentalists have backed restrictions around crop-based feedstocks while biofuel and airline groups support more flexibility.

The similar SAF language in the three proposals is notable given rifts between Democrats and Republicans over other elements of the farm bill, a major five-year agriculture policy package set to expire after September this year. While a handful of Democrats crossed party lines to advance the House proposal out of committee, others have criticized it for cutting food assistance and removing "climate-smart" requirements included in the Inflation Reduction Act for USDA conservation programs.

Stabenow said that key differences remain between her proposal and Republican bills but that she was looking forward to working with lawmakers to "finish our work by the end of the year."

Full legislative text is not yet available for the Stabenow and Boozman proposals, and it is unclear when the Senate committee will mark up a final bill.

By Cole Martin

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