Lawmakers advanced legislation during the 2026 session to strengthen Kentucky’s agriculture and transportation industries and position the state as a leader in the emerging alternative aviation fuel market.
Led by Speaker Pro Tempore David Meade, the legislation establishes targeted incentives to encourage the production and blending of alternative aviation fuel in Kentucky. The General Assembly approved the measure as part of House Bill 869—a broader revenue package signed into law on April 27. The measure was originally filed as House Bill 545.
The incentive is designed to attract investment in alternative aviation fuel while creating a new domestic market for Kentucky agriculture—giving producers more opportunities and keeping more value from what’s grown and produced in the state. Crops like soybeans and corn would serve as primary feedstocks for fuel production.
Beyond agriculture, alternative aviation fuel production could drive investment in crushing facilities, biorefineries, and logistics networks. It also supports Kentucky’s manufacturing base, from steel and fabrication to engineering and maintenance, generating new jobs.
The Kentucky Chamber joined legislators and agriculture and transportation leaders at a press conference during the legislative session to highlight how alternative aviation fuels leverages cross-industry collaboration to support economic growth.
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