Top 10 Bioeconomy Must-Knows in the Biden Transition

8. The Budget, Tax Credits and COVID relief in the Year-End appropriations package

Here are key elements of the year-end package passed by Congress as summarized from a more detailed analysis provided to members of the Advanced Biofuels Association.

Tax Extensions through 2021 for:

• Alternative fuels/mixture credit.
• Second generation biofuels credit.
• Alt fuel vehicle refueling property credit.

Repeal of Second generation biofuels property depreciation.

COVID Relief

Makes biofuel producers eligible for direct payments from USDA to recoup losses due to COVID; top-line funding for the direct aid account is $11.1875 billion. There is no specific spend required for biofuel producers, USDA has wide discretion on how to use these funds.

Appropriations

EPA

• Directs EPA to finalize a rule permitting the production, transfer, and use of biointermediates within 90 days. EPA is also required to brief Congress on its plans for action within 60 days.
• Directs EPA to report to Congress within 180 days on agency and stakeholder engagement to create markets for low-grade and low-value wood (i.e. slash and precommercial thinnings) as a feedstock for alternative fuels.
• Directs EPA to process applications for eRINs within 90 days. Notes the backlog of pathway applications at EPA.
• Reminds EPA that it is able to grant additional SRE relief regardless of the recommendations from the Department of Energy (holdover language from last year championed by Senate EPW Chairman Barrasso)

DOE

• Approximately flat funding for the Bioenergy Technologies Office
• Specific carveouts for feedstock technologies, algal systems, and RNG
• Encourages DOE to focus on sustainable aviation fuel cost reduction…considering relevant global supply chains and coordinating with Federal agencies, national labs, universities, and the aviation industry.
• Directs DOE to conduct a study evaluating pathways to reducing emissions from home heating using advanced biofuels and biofuel blends within 1 year.
• Provides $5 million for research on direct injection, engine technology, and the use of dimethyl ether as a fuel. Encourages R&D in advanced combustion and vehicle engine technology efficiency in propane engines for light and medium-duty applications.

DOT

• Supports sustainable aviation fuels through existing programs, including $31 million for the NextGen Environmental Research Aircraft Technologies and Fuels program, of which $3 million is designated for the CLEEN program and $15 million is for the center of excellence.
• Directs FAA to certify fuels for safe use in commercial aviation and for inclusion under CORSIA, encourages utilization of the aviation sustainability center (ASCENT) researchers to address the entire sustainable aviation fuels supply chain to identify and enable industry to overcome key barriers to entry such as fuel costs.