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Proposed California budget includes new SAF tax credit

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By Erin Krueger

January 13, 2026

Sustainable Aviation Fuels Policy 

California Gov. Gavin Newsom on Jan. 9 released a proposed 2026-27 state budget. Details published by the California Senate Committee on Budget and Fiscal Review indicate the proposed budget includes provisions for a new SAF tax credit.

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XCF Global Inc. announced on Jan. 12 that it is evaluating financing options to support the construction of its New Rise Reno 2 facility. If constructed, New Rise 2 is expected to enable XCF to expand its SAF and renewable fuel platform.

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In this issue of Biomass Magazine, we examine how renewable carbon is being defined, deployed and scaled—from pyrogenic biocarbon standards and orchard waste solutions to the accelerating role of renewable natural gas in transportation.

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The USDA reduced its forecast for 2025-’26 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released Jan. 12. The forecast price for soybean oil was unchanged.

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U.S. soybean production fell by approximately 3% in 2025, according to the USDA’s latest Crop Production report, released Jan. 12. Soybean yields, however, reached a record high of 53 bushels per acre.

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The U.S. EPA on Jan. 7 delivered a draft final rule to the White House Office of Management and Budget to repeal the agency’s 2009 Endangerment Finding and tailpipe greenhouse gas regulations for motor vehicles and engines.

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Washington State leaders, aviation industry partners, research institutions, Tribal representatives and sustainability advocates on Jan. 8 launched the Cascadia Sustainable Aviation Accelerator, an initiative that aims to accelerate SAF deployment.

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American Biogas Council elects board members

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By American Biogas Council

January 12, 2026

The American Biogas Council on Jan. 8 announced the results of its annual board election. Five directors were re-elected, and one new director—Jessica Linville, senior project manager at Tetra Tech—has joined the board.

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U.S. Secretary of Agriculture Brooke L. Rollins has announced the appointment of Justin Benavidez as USDA’s Chief Economist. Benavidez’s appointment follows the retirement of Seth Meyer, who served as USDA’s Chief Economist since 2021.

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As the industrial pellet sector enters 2026, it does so with momentum built over the past year and a clear understanding that continued progress requires sustained engagement.

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Mid-South Engineering operates at the forefront of engineering for the biomass and forest products sectors, distinguished by a strong commitment to clean air initiatives and sustainable practices.

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CPM has introduced the 1200 Direct Drive pellet mill. The new system eliminates the gearbox and V-belt found in traditional pellet mills, making it the most advanced, energy-efficient pellet mill available.

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Repsol has reached a new milestone in its strategy to decarbonize transport by surpassing 1,500 service stations – 1,429 in Spain and 71 in Portugal – supplying Nexa Diesel made from 100% renewables.

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Advanced biofuels pioneer Haffner Energy and power-to-energy player IGNIS P2X kicked off their bio/e-SAF collaborative project AeroVerde. The companies are currently identifying the project’s first site’s precise location in Spain.

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OPAL Fuels has established itself as an ambitious leader in the production and distribution of renewable natural gas.

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The question is no longer which fuel pathway grows fastest, but which sector secures the biomass first.

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The U.S. exported 814,292.2 metric tons of wood pellets in October, down from both 830,469.7 metric tons the previous month and 840,011.1 metric tons in October 2024, according to data released by the USDA on Jan. 8.

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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.

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Total operable U.S. biofuels capacity was at 25.297 billion gallons per year in October, unchanged from the previous month and up nearly 2% when compared to October 2024, according to data released by the U.S. EIA on Dec. 31.

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Clean Fuels asks EPA to maintain RFS compliance deadline

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By Clean Fuels Alliance America

January 09, 2026

Clean Fuels Alliance America on Jan. 8 sent a letter to U.S. EPA Administrator Lee Zeldin, asking the agency to maintain the 2025 Renewable Fuel Standard compliance deadline on March 31, 2026, to mitigate the impacts of rulemaking delays.

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Biomass Magazine has released the agenda for the 19th Annual International Biomass Conference & Expo, scheduled for March 31-April 2, 2026, at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.

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The U.S. EIA on Dec. 31 released data showing U.S. biofuel producers consumed 30.097 billion pounds of feedstock in October, up nearly 8% when compared to the previous month and up nearly 2% when compared to October 2024.

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From Burn Piles to Biochar

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By Keith Loria

January 08, 2026

Biochar and localized biomass solutions offer a new way forward for managing orchard and other ag residues in the wake of California open burning bans.

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While electric and hydrogen aircraft may eventually transform aviation, sustainable aviation fuel offers the most viable path to immediate emissions reduction.

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Southern California Gas Co. is now accepting RNG produced at the new WM Simi Valley RNG Facility into its pipeline system, marking the first time SoCalGas has interconnected a landfill-based RNG site with its infrastructure.

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Capstone Green Energy Holdings Inc. on Jan. 7 announced completing the installation of its 6.6-MW CHP microturbine system at a facility in North Carolina that will use pyrolysis to produce biogas from swine waste.

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Corteva Inc. and bp on Jan. 7 announced the launch of Etlas, their new 50:50 joint venture that will produce oil from crops – including canola, mustard and sunflower – for use in the production of biofuels like SAF and renewable diesel.

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Experts discuss the crucial role standards play in scaling the adoption of biochar, biocoal and biocarbon.

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Projects like SunnyDay Renewables' are leading the biochar revolution and paving the way for a sustainable future for agriculture, that mitigates climate change and offers new hope to the prospect of soil vitality.

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The U.K. Department for Transport late 2025 signaled it may be softening its stance on crop-based SAF. The agency is gathering stakeholder input that could provide a pathway to open the country’s SAF Mandate program to crop-based biofuels.

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