On May 7, 2025, Representatives Nikki Budzinski (D-IL) and Zach Nunn (R-IA) introduced the Agricultural Biorefinery Innovation and Opportunity Act (Ag BIO Act) (H.R. 3253), a bipartisan bill that would support the biofuel economy. According to Budzinski’s May 8, 2025, press release, the bill would update the U.S. Department of Agriculture’s (USDA) Section 9003 program to expand access to grants, streamline loan guarantees, and provide $100 million in mandatory funding over five years. The press release states that the bill would strengthen the USDA Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program by:
- Providing $100 million in mandatory funding through fiscal year 2030;
- 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 bioproducts.
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