DATE INTRODUCED:

05/07/2025

WHAT:

The bipartisan Agricultural Biorefinery Innovation and Opportunity (Ag BIO) Act of 2025 strengthens the USDA Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program (Section 9003 of the Farm Bill) by:

• Establishing a new competitive grant program to build and expand biorefineries, renewable chemicals and other advanced bioproducts;
• Streamlining the application process by including year-round applications and waiving feasibility studies for proven technologies;
• Providing $100 million over five years in mandatory funding;
• Creating a priority scoring system for grant applications to emphasize rural economic development, scalability and contributions to domestic energy security; and
• Encouraging private investment in materials, research and development of new bio products through a 60/40 federal cost-sharing model.

WHY IT MATTERS:

The Section 9003 Program aims to solidify America as a leading manufacturer of advanced biofuels, renewable chemicals and biobased products. By supporting innovations in the clean energy and bioproduct sectors. It offers low-interest loan guarantees for the development, construction and retrofitting of commercial-scale biorefineries and biobased product manufacturing facilities with new and emerging technologies. By facilitating the deployment of these technologies, the program creates economic opportunities for America’s rural communities by creating new markets for biobased feedstocks. The Ag BIO Act modernizes this program through a competitive grant program and streamlines the application process to reflect recent innovations and secure investments in the rural economy. Strengthening this program by providing funding through fiscal year 2030 will unlock investment in biomanufacturing for chemical manufacturing and refining by reducing risks associated with early-stage technologies.

WHAT'S NEXT:

The Agricultural Biorefinery Innovation and Opportunity Act is under consideration by the House Committee on Agriculture. This bipartisan legislation, if passed, will strengthen innovation in biofuels and bioproducts while providing economic opportunities for America’s rural communities.

ORIGINAL SPONSOR:

Reps. Zach Nunn (R-IA) and Nikki Budzinski (D-IL)

SUPPORT:

ClearPath Action, Plant Based Products Council, Corn Refiners Association, Ag Bioeconomy Coalition

CONGRESS.GOV LINK:

H.R. 3253

PRINTABLE SUMMARY:

Printable summary of H.R. 3253