WASHINGTON, D.C. — Representatives Zach Nunn (IA-03) and Nikki Budzinski (IL-13) today introduced the Agricultural Biorefinery Innovation and Opportunity Act, bipartisan legislation that would modernize and expand support for Iowa’s biofuel economy. The legislation updates the USDA’s Section 9003 program to better serve the needs of biofuel producers and bio manufacturers by enhancing access to grants, streamlining loan guarantees, and providing $100 million in mandatory funding over five years.
“Iowa leads the nation in renewable fuels because our producers are constantly innovating,” said Rep. Nunn. “We can’t let outdated federal grant programs hold them back. This bill ensures federal investment matches Iowa’s leadership and expands opportunities for rural communities and homegrown energy solutions.”
“My district is home to world-class research facilities like the University of Illinois’ Integrated Bioprocessing Research Lab and SIUE’s National Corn-to-Ethanol Research Center—both at the forefront of biomanufacturing innovation,” said Rep. Budzinski. “I’m honored to partner with my colleague Zach Nunn on bipartisan legislation that supports the groundbreaking agricultural research led by students and scientists at these institutions. Strengthening America’s bioeconomy drives innovation, creates good-paying jobs, and opens new opportunities for family farms across the Midwest.”
The bill has received broad support from national agricultural, manufacturing, and bioeconomy leaders who emphasize its potential to strengthen domestic supply chains, support rural economies, and drive clean energy innovation:
“We’re at a pivotal moment for the American bioeconomy, and the Ag BIO Act provides the critical tools this sector needs to scale up production of homegrown, plant-based solutions,” said Plant Based Products Council Executive Director James Glueck. “We are grateful to ag bioeconomy champions on Capitol Hill for their strategic vision to introduce bipartisan legislation that will elevate U.S. leadership in biomanufacturing, create resilient supply chains, and open new markets for American farmers and innovators.”
“This bipartisan legislation is a direct investment in rural America and those in the agriculture industry who drive our economy,” said Corn Refiners Association President & CEO John Bode. “By expanding markets for agricultural feedstocks and supporting the next generation of biomanufacturing, this legislation will help secure America’s leadership in industrial innovation while creating good-paying jobs in communities across the country.”
“The Ag BIO Act is important to the future of our nation’s ag bioeconomy,” said Ag Bioeconomy Coalition spokesperson Robin Bowen. “The U.S. can, and should, be the world leader in bioproduct research, development, and manufacturing. The investments in this bill will go a long way to help make that happen. In a future with a strong American ag bioeconomy, producers will benefit from new markets for their feedstocks, consumers will have more options to satisfy their needs, and workers will have good-paying jobs close to home. We’re excited to see the Ag BIO Act introduced and are eager to help Congress enact this important legislation.”
Iowa continues to lead the nation in biofuel production. In 2022 alone, renewable fuels supported over 57,000 Iowa jobs and contributed $7.2 billion to the state’s economy, according to the Iowa Renewable Fuels Association. However, as demand increases and technologies evolve, current federal infrastructure programs have not kept pace, creating barriers to innovation, market access, and expanded production.
The bill strengthens the USDA Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program by:
- Providing $100 million in mandatory funding through FY2030,
- Updating the loan guarantee program to include year-round applications and waive feasibility studies for proven technologies,
- Establishing a new competitive grant program to help build and expand biorefineries focused on producing ultra-low-carbon and zero-carbon bioethanol, renewable chemicals, and other advanced bioproducts,
- Creating a priority scoring system for grant applications that evaluates environmental impact, rural economic development, scalability, and contributions to domestic energy security, and
- Ensuring a 60/40 federal cost-sharing model to encourage private investment in materials, research, and development of new bio products.
Text of the bill can be found here.
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