The American Biogas Council (ABC) has welcomed the US Senate’s passage of new budget reconciliation legislation, praising it as a major boost for the country’s biogas sector and rural energy resilience.
The legislation includes several key measures aimed at supporting the development of renewable energy projects that recycle organic waste into biogas - an area the ABC says is critical to waste reduction, rural economic growth, and domestic energy security.
ABC Executive Director Patrick Serfass responded positively to the move, noting that the Senate had sent a clear signal of support for homegrown renewable energy.
“We’re encouraged to see the Senate continue to recognise the value of recycling manure, food waste, wastewater sludge and other organic wastes to create homegrown energy,” said Serfass.
“Three in four American voters support federal investment in biogas, and this bill gives the industry the tools it needs to keep building, innovating and creating jobs - particularly in rural communities.”
Among the most significant elements of the bill is the extension of the Clean Fuel Production Credit (Section 45Z), a mechanism that rewards clean energy producers based on lifecycle emissions.
The bill also retains vital protections for manure-based biogas initiatives, with clear direction provided for updates to the federal GREET model (used to assess emissions impacts of fuels).
Furthermore, the legislation ensures that only feedstocks sourced from the US or North America are eligible for credits, a decision designed to strengthen domestic producers’ position in the market.
The bill continues the transferability of tax credits - a move the ABC says will unlock funding across agricultural, wastewater and food waste sectors - and maintains long-term tax support for biogas-to-power projects through 2032.
Additional clarity has also been provided for the hydrogen production credit (45V), offering further incentive for projects using biogas and renewable natural gas (RNG) in hydrogen supply chains.
“The Senate has taken a significant step forward,” said Serfass. “We look forward to collaborating with the House to ensure this support becomes law.”
US Senate backs biogas in landmark legislation, says ABC

