[originally published in RealClear Energy]
Increasingly, agriculture and renewable power manufacturing have develop into inexorably linked. Photo voltaic, wind, and biofuels have created new financial potential and horizons of alternative for American farmers within the final 20 years. This juncture comes into middle highlight in politics each 5 years when Congress takes up its “Farm Invoice,” laws that authorizes authorities applications on the Division of Agriculture (USDA).
The U.S. Home of Representatives’ Committee on Agriculture just lately marked up its draft 2024 Farm Invoice, and Senate Democrats, led by Senate Agriculture Chairwoman Debbie Stabenow, have additionally launched an in depth proposal. Each payments take steps to advance this promising new sector for American farmers – however each drafts may and may embrace bolder motion to assist America’s rising superior biofuels business given the chance to advertise emissions reductions, power safety, and the competitiveness of American clear power know-how.
The unique Farm Invoice, handed in 1933 as a part of the New Deal, aimed to alleviate excessive monetary uncertainty for farmers by creating value parity for crops. Immediately, it continues to supply financial stability for agricultural producers, but additionally rather more – together with setting essential meals and diet coverage. With the expansion of our home superior biofuels sector, it has additionally develop into a priceless software to assist low carbon transportation fuels.
With the deadline approaching on this “should move” laws, Congress is working to advance a deal that may move a divided Congress. Reaching settlement on a complete piece of laws that may win assist from the Democrat-led Senate, Republican-led Home, and in the end be signed into regulation by President Biden is not any simple job. Help for superior biofuels is one space the place there may be significant alternative for bipartisan cooperation that may push the invoice past the established order.
Certainly, previous updates to the Farm Invoice have pushed vital power innovation and safety. The 1990 replace included the World Local weather Change Prevention Act and the 2012 invoice supported power transition for feedstock manufacturing and infrastructure growth. But, Congress’ 2024 invoice markup to this point suggests this yr’s iteration could not considerably transfer the needle.
There are a number of promising exceptions. One bipartisan modification adopted by the Home Agriculture Committee would create a method to advance sustainable aviation gas (SAF) manufacturing, underscoring rising assist from each Republicans and Democrats for SAF. Different adjustments within the present Home invoice would make the perennially common REAP (Rural Power for America Program) program extra accessible for biofuels and prolong authorizations for key funding applications.
These additions are glorious steps ahead. But Congress may go even additional by growing funding for applications which are in any other case left flat. One withdrawn modification would have provided grants to develop, assemble, or retrofit pilot or demonstration-scale biorefineries to showcase superior biofuels’ industrial viability. One other proposed modification would have improved the U.S. Division of Agriculture’s (USDA) potential to fund promising SAF analysis and improve home SAF refining capability.
Supporting amendments that promote clear power and the American farmer is important given the potential influence of tax credit to assist renewable fuels as enacted by the Inflation Discount Act (IRA). These funds may go even additional to considerably increase the superior biofuels business, notably in home SAF manufacturing, if afforded extra assist within the Farm Invoice.
Superior biofuels are an important software to realize our local weather ambitions and assist rural America. As a grown-here drop-in gas, they’ll bridge the electrification hole and start lowering emissions on the highway at the moment. They’ll additionally decrease emissions from heavy transport transportation autos like planes, marine vessels, and vans which are important to our financial system. We’d like an all-of-the-above technique to fight local weather change, of which the Farm Invoice is a key pillar.
Traditionally, the Farm Invoice has thought of power safety during times of worldwide instability. Superior biofuels can assist alleviate stress on America’s power provide portfolio amid a backdrop of geopolitical unrest and unreliable worldwide power partnerships. By adopting common sense provisions on superior biofuels when the Senate takes up the invoice in Committee, Congress may meaningfully advance confirmed options to enhance U.S. power safety.
Congress has taken steps on a bipartisan foundation to assist the power transition and farmers’ financial alternatives with this Farm Invoice. Bolder motion is feasible and ought to be Congress’ endeavor as this package deal advances to flooring consideration and towards the President’s desk within the months to come back.
Michael McAdams is the president of the Superior Biofuels Affiliation.
