WASHINGTON, D.C. — U.S. Representatives Zach Nunn (IA-03) and Nikki Budzinski (IL-13) introduced bipartisan legislation today to increase biofuel production and drive down energy costs for Iowa families. The Agricultural Biorefinery Innovation and Opportunity (Ag BIO) Act would increase funding for loans to support innovation in the biofuels industry and cut red tape that drives up energy costs for Iowa families.
“The biofuels industry drives Iowa’s economy and is critical to our nation’s energy security,” said Rep. Nunn. “The bipartisan Ag BIO Act will eliminate bureaucratic red tape that is driving up energy costs by making it harder for biofuels producers to innovate and expand their manufacturing capacity.”
Iowa is the top producer of biofuels nationally, contributing more than $7.2 billion to Iowa’s GDP and $3.5 billion in income to Iowa households. The industry supports 57,000 Iowa jobs with nearly every other row of corn in Iowa used to produce ethanol.
“The University of Illinois is a national leader in biomanufacturing and is the proud home to the Integrated Bioprocessing Research Lab – where students and faculty drive world-class innovation every day,” said Rep. Budzinski. “Today, I’m proud to join my friend and colleague, Zach Nunn, to introduce bipartisan legislation supporting the critical agricultural research happening at places like my alma mater. By investing in our bioeconomy, we can spur innovation and expand markets for family farmers throughout the Heartland.”
Currently, the U.S. Department of Agriculture (USDA) Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance program offers loans for development, construction, and implementation of new technologies in biobased manufacturing; however, the program is underutilized due to bureaucratic red tape preventing businesses from accessing funding.
The bipartisan Ag BIO Act improves the USDA Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance program by:
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Creating a grant within the program for the construction and expansion of new or existing biorefineries.
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Expanding the types of biofuels that are eligible for funding, including ultra-low carbon bioethanol and zero-carbon bioethanol.
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Eliminating bureaucratic red tape that is impeding access to the funding, including a requirement for duplicative feasibility studies on already proven and commercially available technologies.
To ensure the program has sufficient funding to meet increased demand with these changes, the Ag BIO Act also increases funding for the grant and loan program to $100 million annually over five years.
The Ag BIO Act was introduced in the U.S. Senate by Senators Jerry Moran (KS) and Amy Klobuchar (MN). The bill has been endorsed by the Corn Refiners Association, Plant Based Products Council, Ag Bioeconomy Coalition, and the Ag Energy Coalition:
“The corn refining industry applauds Representatives Zach Nunn and Nikki Budzinski for introducing the Ag BIO Act,” said John Bode, Corn Refiners Association President and CEO. “The advancement of this House bill marks an important step in strengthening the U.S. biomanufacturing sector, spurring industry-wide innovation, and investing in rural communities and economies. We are excited to work with Representatives Nunn and Budzinski as they champion this legislation to enhance U.S. competitiveness in the global bioeconomy and create opportunities for the millions of farmers, innovators, and entrepreneurs in rural America. We look forward to seeing this bipartisan bill pass in both chambers of Congress.”
“The Plant Based Products Council is thrilled by the introduction of the Ag BIO Act,” said James Glueck, Plant Based Products Council Executive Director. “This bipartisan and bicameral legislation will bolster investments in sustainable biomanufacturing, help the U.S. develop new and emerging technologies, and create opportunities for the millions of Americans working in the plant-based products industry.”
“The Ag Bioeconomy Coalition applauds the introduction of the Agricultural Biorefinery Innovation and Opportunity Act. This legislation will advance the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program,” said Robin Bowen, Ag Bioeconomy Coalition. “The U.S. has the feedstock diversity and abundance to be a world leader in the advanced bioproducts space. Now is the time to leverage our strengths and invest in critical infrastructure, as this legislation does. Like the Senate version of the Ag BIO Act, this legislation will improve the scalability of American bioproducts and speed up bringing new innovations to market.”
“The Ag Energy Coalition applauds Representatives Zach Nunn and Nikki Budzinski for introducing bipartisan legislation to improve and expand USDA’s Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program,” said Lloyd Ritter, Ag Energy Coalition Director. “Biorefineries are a crucial source of economic opportunities and good-paying jobs for rural communities. Modernizing the program will help build and expand facilities for advanced biofuels, biobased products, and renewable chemicals. This legislation will secure America’s leadership in developing innovative, environmentally friendly biomanufacturing technologies and will speed the nation’s energy and bioeconomy transformation.”
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