The American Biogas Council (ABC) has hailed the U.S. Senate’s approval of new budget reconciliation legislation, describing it as a significant win for the country’s biogas sector and a strong push toward rural energy resilience and clean energy growth, reports Bioenergy Insight.
The legislation introduces several key provisions aimed at supporting renewable energy initiatives that transform organic waste—such as manure, food scraps, and wastewater sludge—into biogas. According to the ABC, these measures will help reduce waste, stimulate rural economic development, and boost domestic energy security.
ABC Executive Director Patrick Serfass praised the move, saying the Senate’s decision sends a powerful message of support for clean, locally produced energy. He noted that a majority of American voters favor federal investment in biogas and that the legislation equips the industry with tools to expand, innovate, and generate employment, particularly in rural communities.
A central element of the bill is the extension of the Clean Fuel Production Credit (Section 45Z), which rewards clean fuel producers based on their lifecycle emissions performance. The bill also upholds existing protections for manure-based biogas operations and offers clear direction for updating the federal GREET model used to assess fuel emissions. It further stipulates that only feedstocks sourced from within the U.S. or North America will qualify for credits, a move designed to reinforce the market position of domestic producers.
The legislation maintains the policy allowing tax credits to be transferred between parties, a mechanism the ABC says will open up funding opportunities in agriculture, wastewater, and food waste sectors. Long-term tax support for biogas-to-power projects is also preserved through 2032. In addition, the bill provides important clarification regarding hydrogen production credits (Section 45V), ensuring that projects using biogas and renewable natural gas in hydrogen supply chains are eligible for incentives.
Serfass described the Senate’s decision as a significant step forward and expressed optimism about working with the House to turn the legislation into law. The ABC sees this development as a major advance for the U.S. biogas industry and a strong signal of the country’s commitment to cleaner, more sustainable energy.
