To amend the Clean Air Act to modify the definition of renewable biomass for purposes of the renewable fuel standard, and for other purposes.
Summary
HR9827, a bipartisan bill to expand the definition of renewable biomass under the Clean Air Act's Renewable Fuel Standard, was introduced and referred to the House Energy and Commerce Committee. If enacted, it would increase eligible feedstocks for advanced biofuels, lowering input costs for producers of renewable diesel and biodiesel. The bill is in early stages with no funding attached, but its broad bipartisan sponsorship signals potential legislative traction. Key beneficiaries include pure-play renewable fuel producers like Calumet ($CLMT), Delek ($DK), HF Sinclair ($DINO), and Green Plains ($GPRE).
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Key Takeaways
- 1.HR9827 expands RFS feedstock eligibility, lowering input costs for renewable diesel and biodiesel producers.
- 2.Bipartisan sponsorship (11 cosponsors) provides legislative momentum, but the bill is in early committee stage.
- 3.Pure-play renewable fuel producers ($CLMT, $DK, $DINO, $GPRE) are structural beneficiaries; broad energy sector impact is minimal.
- 4.No appropriation involved; impact is regulatory and dependent on EPA implementation.
- 5.Timeline uncertain; passage likely requires multiple sessions and potential Senate companion.
Market Implications
The bill is currently a low-impact legislative signal, but if it advances, it could improve margin outlooks for renewable fuel producers. $CLMT, $DK, $DINO, and $GPRE are most exposed, as feedstock costs represent 60-80% of operating expenses for renewable diesel. Larger integrated refiners ($VLO, $PSX) are also obligated parties and would benefit from lower RIN prices, but their renewable segments are smaller relative to total revenue. No real market data is provided, so price impact is not estimable. Investors should watch for committee markups and any Senate companion bill as triggers for sector revaluation.
Full Analysis
On July 22, 2026, Rep. Cliff Bentz (R-OR) introduced HR9827, a bill to amend the Clean Air Act to modify the definition of renewable biomass for the Renewable Fuel Standard (RFS). The bill has 11 original cosponsors spanning both parties, including Reps. Thompson (D-MS), Westerman (R-AR), and Latta (R-OH). It was referred to the House Committee on Energy and Commerce, the primary panel for energy and environmental legislation. The bill is in an early stage; no further action has occurred, and no companion Senate bill has been introduced. No funding amount is specified — the bill changes eligibility rules, not direct appropriations. The mechanism is regulatory: expanding the definition of 'renewable biomass' to include additional feedstocks such as forestry residues, agricultural residues, and waste oils. This would make more feedstocks eligible for generating RIN (Renewable Identification Number) credits under the RFS, thereby increasing supply and lowering costs for producers of advanced biofuels, biomass-based diesel, and cellulosic ethanol. Obligated parties (refiners) would benefit from greater compliance flexibility and potentially lower RIN prices. For renewable fuel producers, the primary impact is on feedstock procurement: more eligible feedstocks reduce input costs and production risk. Pure-play producers of renewable diesel and biodiesel — such as Calumet ($CLMT), Delek US ($DK), HF Sinclair ($DINO), and Green Plains ($GPRE) — are the most directly exposed. These companies have dedicated renewable fuel facilities that can capitalize on cheaper, diverse feedstock streams. Corn ethanol producers are less affected, as corn is already eligible. The timeline is uncertain: committee hearings, markup, and floor votes are needed, and the 119th Congress runs through 2027. Passage probability is moderate given bipartisan support but early stage. No convergence from related signals is available in the provided data.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Expands definition of renewable biomass under the Clean Air Act to include additional feedstocks (e.g., forestry residues, agricultural residues, waste oils) eligible for RFS credit generation.
Who must act
EPA-regulated renewable fuel producers and obligated parties (refiners) under the Renewable Fuel Standard.
What happens
Lower input costs and increased feedstock availability for advanced biofuel production, potentially reducing compliance costs for obligated parties and boosting RIN supply.
Stock impact
Green Plains ($GPRE) operates ethanol and renewable diesel plants; expanded feedstock eligibility could reduce its corn procurement costs and enable higher-margin cellulosic or advanced biofuel output, improving plant utilization and margins.
What the bill does
Same as above: expands renewable biomass definition to include additional feedstocks for RFS-qualified fuels.
Who must act
Renewable fuel producers and obligated parties.
What happens
Increased availability of low-cost feedstocks (e.g., waste oils, animal fats) for renewable diesel production, improving feedstock cost flexibility and margins.
Stock impact
Calumet ($CLMT) produces renewable diesel at its Montana Renewables facility; expanded biomass definition allows use of a wider range of cost-effective feedstocks, directly improving production margins and capacity utilization.
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
A bill to amend the Clean Air Act to modify the definition of renewable biomass for purposes of the renewable fuel standard, and for other purposes.
A resolution expressing support for the designation of May 2026 as "Renewable Fuels Month" to recognize the important role that renewable fuels play in lowering fuel prices for consumers, lessening reliance on foreign adversaries, supporting rural communities, and reducing carbon impacts.
To amend the Internal Revenue Code of 1986 to extend biodiesel and renewable diesel incentives, and for other purposes.
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