The Senate Agriculture Committee has unveiled a draft Farm Bill, the Rural Prosperity and Food Act, which introduces significant changes to the USDA’s loan guarantee program. The bill’s Energy Title includes several key updates, such as revised definitions for “lifecycle greenhouse gas emissions,” “ultra-low carbon bioethanol,” and “zero-carbon bioethanol.” These definitions are crucial for qualifying projects for the loan guarantee program.
The USDA’s biorefinery loan guarantee program has been expanded to include projects producing ultra-low and zero-carbon bioethanol, along with other advanced biofuels and biobased products.
The bill eliminates the “technologically new” requirement for eligible projects and allows for the production of renewable chemicals and biobased products alongside end-user products.
Additionally, the bill specifically recognizes sustainable aviation fuel (SAF) as an eligible output and updates the scoring process for program applications. The maximum loan guarantee amount has been increased to $400 million, and the bill includes provisions for grant funding.
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Other sections of the Energy Title extend and update various bioenergy programs, including the Bioenergy Program for Advanced Biofuels, the Biodiesel Fuel Education Program, and the Rural Energy for America Program.
The 2018 Farm Bill expired in September 2023, but a one-year extension was approved to avoid a government shutdown. With this extension now expired, it’s unlikely a new Farm Bill will be enacted until next year.
More details and the full text of the Rural Prosperity and Food Security Act are available on the Senate Committee on Agriculture, Nutrition and Forestry website.
Read more: 2023 Farm Bill Represents A Tremendous Opportunity For Carbon Removal – Carbon Business Council
