Agriculture and Food Bills

FUEL Reform Act

Sponsored by Andy Biggs

The Farm Security and Rural Investment Act of 2002 established Title IX, which created multiple Department of Agriculture bioenergy subsidy programs designed to support the development and production of renewable fuels, particularly ethanol and biodiesel. These programs have provided direct payments, tax incentives, and grants to farmers and fuel producers to encourage biofuel production as part of broader energy independence and agricultural support goals. Over two decades, these subsidies have become embedded in federal agricultural policy and have shaped investment decisions across the farming and fuel production sectors. The FUEL Reform Act repeals Title IX of the Farm Security and Rural Investment Act of 2002 in its entirety. This action eliminates all Department of Agriculture bioenergy subsidy programs authorized under that title, including direct payments to biofuel producers, grants for bioenergy infrastructure development, and related support mechanisms. The repeal is comprehensive and removes the statutory authority for the Department of Agriculture to administer these programs going forward. The repeal takes effect upon enactment, immediately terminating new obligations under these programs. Existing contracts and commitments may require wind-down procedures determined by the Department of Agriculture. The elimination of these subsidies redirects federal resources previously allocated to bioenergy support, though the bill does not specify alternative uses for those funds. The change will affect farmers who have relied on bioenergy payments as part of their income, fuel producers who have benefited from production incentives, and the renewable fuel industry's investment landscape, which has historically depended on these federal supports.