Washington, D.C.: In a new bipartisan effort to strengthen the U.S. biofuel economy, Congresswoman Nikki Budzinski (D-IL) and Congressman Zach Nunn (R-IA) have introduced the Agricultural Biorefinery Innovation and Opportunity Act, or Ag BIO Act. The legislation updates and expands the U.S. Department of Agriculture’s Section 9003 program with a focus on innovation, rural economic growth, and clean energy development, reports Riverbender.com.
The bill proposes $100 million in mandatory funding over the next five years to help accelerate biofuel and bioproduct development. Key updates include broader access to grants, streamlined loan guarantees, and a new scoring system for projects based on environmental and economic impact.
“My district is home to top research centers like the University of Illinois and SIUE’s Corn-to-Ethanol Research Center,” said Budzinski. “This bill helps bring the groundbreaking work happening in our communities to life—creating jobs, supporting farmers, and building a stronger, cleaner economy.”
Nunn echoed those goals, highlighting the need for modernization. “Iowa’s renewable fuels industry leads the country, but outdated grant programs slow progress. This bill ensures federal support keeps pace with innovation and expands opportunities in rural communities.”
The Ag BIO Act has already earned endorsements from major agricultural and clean energy groups.
“We’re at a turning point for America’s bioeconomy,” said James Glueck of the Plant Based Products Council. “This bill provides the critical support needed to expand U.S. leadership in sustainable manufacturing and supply chains.”
John Bode, CEO of the Corn Refiners Association, called the legislation “a direct investment in rural America” that would “help secure the nation’s leadership in industrial innovation.”
Robin Bowen of the Ag Bioeconomy Coalition emphasized the broader economic benefits, noting, “This bill helps open new markets for producers, offers more consumer choices, and brings well-paying jobs closer to home.”
Under the proposed law, the USDA’s Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program would see several major changes:
Loan guarantee reform, including year-round applications and fewer requirements for proven technologies.
New competitive grants to support biorefineries focused on ultra-low and zero-carbon bioethanol and other advanced products.
Priority scoring for applications based on environmental benefits, rural job creation, scale-up potential, and national energy security.
Cost-sharing updates, with a 60/40 federal-to-private ratio to encourage investment.
As a member of the House Agriculture Committee, Budzinski has been active in advancing legislation to support renewable fuels and family farms. Her record includes bills to expand access to E15 fuel, promote sustainable aviation fuel, and level the playing field for emerging fuel technologies.
The Ag BIO Act now awaits consideration in the House, where its backers hope bipartisan support will carry it forward.
