Senate farm bill draft boosts biofuels, SAF and biorefinery grants

The Senate Agriculture Committee on June 23 proposed grants of up to $10 million for biorefineries and SAF projects in its Farm Bill 2.0 draft. The package also would rename USDA’s Section 9003 program, expand its reach to commercial biofuels and SAF, and let proven technologies skip a third-party feasibility study.

USDA’s current Section 9003 program offers loan guarantees of up to $250 million for the development, construction and retrofitting of commercial-scale biorefineries, and current regulations require an independent third-party feasibility study before approval. The draft would retitle the program the Biorefinery, Renewable Chemical, Biobased Products Manufacturing and Sustainable Aviation Fuel Assistance Program, while shifting its purpose beyond new and emerging technologies to also cover advanced biofuels, renewable chemicals, biobased products and sustainable aviation fuel. It would also let USDA waive the feasibility study requirement for proven or commercially available technologies, a change that could move mature ethanol, renewable diesel and SAF projects through the pipeline faster.

The draft would also authorize grants for organizations that help agricultural producers and rural small businesses apply for REAP money, create a rebate pilot for certain efficiency equipment, and simplify the application process for smaller projects. It also would clarify that SAF qualifies as an advanced biofuel and direct USDA to create an agency-wide strategy to expand SAF production. DOE is working with USDA, the Department of Transportation and other agencies on a government-wide push to scale domestic SAF.

Several bioeconomy programs would be extended through 2031, including the Bioenergy Program for Advanced Biofuels, the Biodiesel Fuel Education Program, the Feedstock Flexibility Program for Bioenergy Producers, the Biomass Crop Assistance Program and the Carbon Utilization and Biogas Education Program. The June 23 draft is budget neutral and includes more than 100 bipartisan bills.

The American Soybean Association said it was encouraged by the Senate framework, while the National Business Aviation Association has backed earlier House language that would explicitly expand biofuels policy to include SAF. Senate Agriculture Committee Democrats said they appreciated the bipartisan provisions and were willing to negotiate, but criticized unresolved SNAP cuts tied to the One Big Beautiful Bill Act. The House passed its own 2026 farm bill on April 30.