US representatives introduce Ag BIO Act to the House

In Washington, U.S. Representatives Zach Nunn (IA-03) and Nikki Budzinski (IL-13) introduced bipartisan legislation 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. 

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: 

Creating a grant within the program for the construction and expansion of new or existing biorefineries.  

Expanding the types of biofuels that are eligible for funding, including ultra-low carbon bioethanol and zero-carbon bioethanol.   

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.