Senate Ag Committee releases draft Farm Bill that includes significant updates to USDA’s loan guarantee program

Sen. Debbie Stabenow, D-Mich.,

November 19, 2024

BY Erin Voegele

Sen. Debbie Stabenow, D-Mich., chairwoman on the Senate Agriculture, Nutrition and Forestry Committee, on Nov. 18 introduced the Rural Prosperity and Food Act, which is the Senate’s version of the upcoming Farm Bill. The Energy Title of the legislation includes a variety of biofuel provisions. 

Section 9001 of the bill’s Energy Title includes several new and updated definitions. The bill aims to define the term “lifecycle greenhouse gas emissions” to mean the aggregate quantity of greenhouse gas (GHG) related to the full fuel lifecycle as determined by the U.S. Department of Energy’s GREET model. 

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Section 9001 of the bill also includes a provision for the term “ultra-low carbon bioethanol,” which is defined to mean ethanol that has a carbon intensity (CI) of 30 kilograms of carbon dioxide equivalent per MMBtu or less that is produced using one or more specified technologies, including carbon capture, utilization or sequestration, renewable electricity, biomass energy, renewable natural gas (RNG) thermal energy, low-carbon farming practices, cover crops, or any other practice recognized in the most recent version of GREET to reduce the CI of ethanol production. 

Similarly, “zero-carbon bioethanol,” is defined to mean ethanol that has a carbon intensity of 0 kilograms or less carbon dioxide equivalent per MMBtu that is produced using one or more the methodologies listed under the definition for “ultra-low carbon bioethanol.”

Section 9003 of the Energy Title updates the USDA’s biorefinery, renewable chemical and biobased product manufacturing assistance loan guarantee program by specifying that eligible projects include those to produce ultra-low carbon bioethanol and zero-carbo bioethanol, along with other advanced biofuels, renewable chemicals and biobased products. The bill also removes a requirement that projects be “technologically new” to qualify for the loan guarantee program and specifies that eligible projects can produce renewable chemicals and biobased products in addition to end-user products. In addition, the legislation specifically names sustainable aviation fuel (SAF) as an eligible output for projects that are awarded loan guarantees under the program, updates the way program applications are scored, and allows the USDA to waive feasibility studies for certain projects that use proven or otherwise commercially available technologies. The bill also increases the maximum amount of a loan guarantee from $250 million to $400 million. In addition, the legislation includes several provisions updating the award of grant funding under the program. 

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Various other sections of the Energy Title extend and/or update the Bioenergy Program for Advanced Biofuels; the Biodiesel Fuel Education Program; the Rural Energy for America Program; the Biobased Markets Program; the Feedstock Flexibility Program for Bioenergy Producers; the Biomass Crop Assistance Program; and the Carbon Utilization and Bigas Education Program. 

Congress most recently passed a Farm Bill package in 2018. That legislation was set to expire on Sept. 30, 2023. Lawmakers, however, extended the provisions of the 2018 Farm Bill for one year, through Sept. 30, 2024, as part of a stopgap bill approved on Nov. 14, 2024, to avoid a government shutdown. That extension is now expired. It is unlikely Congress will act to implement a new Farm Bill until next year.

Additional information, including a full copy of the Rural Prosperity and Food Security Act, is available on the Senate Committee on Agriculture, Nutrition and Forestry website.

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