In the early hours of May 22, the U.S. House narrowly passed the HR 1 bill, which includes key provisions to extend and update the 45Z Clean Fuel Production Tax Credit through 2031. The bill limits eligibility to fuels made from feedstocks produced in the U.S., Canada, or Mexico and excludes indirect land use change (ILUC) from lifecycle GHG calculations. It also directs the Treasury to assign distinct emission factors to manure-based feedstocks like dairy, swine, and poultry waste.
The legislation has been welcomed by the biofuel industry. Stakeholders from ethanol, sustainable aviation fuel (SAF), and biogas sectors praised the extended credit and feedstock-focused provisions for offering long-term policy certainty and encouraging investment. SAF Alliance noted the bill provides a strong foundation for scaling up SAF production, while biogas advocates highlighted the support for waste-to-energy systems. The bill now heads to the Senate for review.
