The U.S. House of Representatives on Jan. 8 voted 397 to 28 in favor of an appropriations package that includes language on biomass energy and sustainability. Reports accompanying the legislation include guidance on small refinery exemptions (SREs) and sustainable aviation fuel (SAF).&nbsp;The House and Senate Appropriations Committee on Jan. 5 released the legislative package, which includes three bicameral, bipartisan fiscal year appropriations bills. The three bills include fiscal year 2026 appropriations for Commerce, Justice, Science and Related Agencies; Energy and Water Development; and Interior, Environment and Related Agencies.&nbsp;The legislative package, H.R. 6938, includes language on policies related to biomass energy. Specifically, Section 429 of the bill directs the U.S. Department of Energy, the USDA, and the U.S. EPA to jointly ensure that federal policy relating to biomass energy is consistent across all federal departments and agencies and recognizes the full benefits of the use of forest biomass for energy, conservation and responsible forest management. The agencies are also directed to establish clear and simple policies for the use of forest biomass as an energy solution, including policies that reflect the carbon neutrality of forest bioenergy and recognize biomass as a renewable energy source, provided the use of forest biomass for energy production does not cause conversion of forests to non-forest use. Biomass policies are also expected to encourage provide investment throughout the biomass supply chain, including forest bioenergy production. &nbsp;The Senate Appropriations Committee on Jan. 5 also released an explanatory statement that accompanies the EPA appropriations bill. The report does not carry the force of law. Rather, it includes guidance on congressional intent regarding a variety of matters, including those related to the RFS and small refinery exemption (SRE) program.&nbsp;Regarding the SRE program, the explanatory statement stresses that the EPA may exempt small refineries from compliance with the RFS in certain circumstances, and that small refineries “may at any time petition the Administrator for an extension of the exemption for the reason of disproportionate economic hardship.” The statement also directs EPA to develop policies and procedures for making SRE decisions consistent with a <a href="https://ethanolproducer.com/articles/biofuel-groups-call-gao-report-on-sres-shoddy-obsolete-19740">report published by the Government Accountability Office in November 2022</a>.&nbsp;That GAO report, titled "Renewable Fuel Standard: Actions Needed to Improve Decision-Making in the Small Refinery Exemption Program,” was slammed as shoddy and obsolete by representatives of the U.S. biofuel industry.&nbsp;Within the report, the GOA made seven specific recommendations. First, the agency recommended that the EPA reassess its conclusion that small refineries recover their RFS compliance costs in the price of gasoline and diesel they sell. Second, the GAO recommended the DOE develop an approach for consulting on SREs that provides EPA with useful information on disproportionate economic hardship. In addition, the GAO said the EPA should identify and communicate what refineries would need to submit to demonstrate disproportionate economic hardship; develop policies and procedures for making SRE decisions; develop policies and procedures to ensure the agency meets statutory deadlines; and assess the effect of SRE decision timing on the benefit provided to small refineries, as well as the effect on fuel markets, and reconsider petition requirements. The report also encouraged the DOE to develop policies and procedures for its consultation with EPA on SRE petitions.The explanatory statement also directs the EPA to provide a briefing within 60 days on its proposed actions related to eRINs within the RFS program. In addition, the agency is directed to submit a report to lawmakers within 30 days that is focused on fuel derived from waste plastic or waste tires, including any plans the EPA may have to qualify such fuels as cellulosic biofuel under the RFS. &nbsp;A separate explanatory statement released in conjunction with the portion of the legislative package providing fiscal year 2026 funding for the U.S. Department of Energy notes up to $5 million can be made available to continue supporting the development of new domestically manufactured, low-emission, high-efficiency resident wood heaters.&nbsp;Lawmakers also specify that the appropriations funding agreement provides up to $5 million to support research and development aimed as advancing the supply of renewable natural gas (RNG), clean hydrogen, and other impactful products form syngas; up to $25 million for algae-related activities; and up to $10 million for research and development of the anaerobic bioproduction of 3-hydroxypropionic acid utilizing existing Midwest ethanol fermentation infrastructure and renewable whole-kernel corn feedstock.&nbsp;Within the statement, lawmakers also encourage the DOE “to conduct research related to the development, pre-piloting, piloting, and demonstration scale-up of renewable liquefied petroleum gas or alternative fuels production, in parallel with the department’s focus on the scale-up of sustainable aviation fuel technologies.” The DOE is also “encouraged to pursue the advancement and development of pre-commercial, advanced sustainable aviation fuel feedstocks and technologies to include non-biogenic feedstocks and technologies, such as hydrogen-based e-fuels.”Full copies of the explanatory statements are available on the Senate Committee for Appropriations <a href="https://www.appropriations.senate.gov/news/minority/appropriators-release-three-bill-minibus">website</a>.

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The U.S. House of Representatives on Jan. 8 voted 397 to 28 in favor of an appropriations package that includes language on biomass energy and sustainability. Reports accompanying the legislation include guidance on SREs and SAF. 

House passes appropriations package with bioenergy provisions

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