House passes Build Back Better Act

The U.S. House of Representatives on Nov. 19 voted 220 to 213 to approve the Build Back Better Act, a $1.9 trillion legislative package that includes nearly $1 billion for biofuels infrastructure, extends the biodiesel tax credit, and includes incentives for sustainable aviation fuel (SAF).

One section of the bill appropriates $960 million over the next ten years to support biofuel infrastructure and agriculture product market expansion. The funds are to be distributed via competitive grants to transportation fueling and distributing facilities, including fuel stations, convenience stores, fleet facilities, terminal operators, mid-stream partners and heating oil distribution facilities to support the installation, retrofit or upgrade of dispensers, pumps and other equipment to dispense higher ethanol and biodiesel blends, such as E15 and B20. The grants can cover up to 75 percent of project costs.

The legislation also extends the biodiesel and renewable diesel tax credit for four years, through Dec. 31, 2026. A similar extension is included the existing second-generation biofuel incentive.

In addition, the bill includes support for SAF, including a newly created tax credit. The tax credit starts at $1.25 per gallon of SAF, with an additional 1 cent for each percentage point by which the lifecycle greenhouse gas (GHG) emissions reduction percentage of the fuel exceeds 50 percent. The credit is capped at $1.75 per gallon, according to the text of the legislation. Also in support of SAF, the bill allocates funding for a grant program to carry out projects to produce, transport, blend or store SAF. 

The Build Back Better Act will now be considered by the U.S. Senate, which is expected to make changes to the roughly 2,500-page piece of legislation.

Additional information on the Build Back Better Act is available on the House Budget Committee website.