Budzinski Introduces Bipartisan Bill to Expand Biofuels and Biobased Manufacturing Innovation

WASHINGTON, D.C. — Today, Congresswoman Nikki Budzinski (IL-13) and Congressman Zach Nunn (IA-03) introduced the Agricultural Biorefinery Innovation and Opportunity Act (Ag BIO Act), a bipartisan bill to support the biofuel economy in Illinois and across the country. The legislation updates the USDA’s Section 9003 program to expand access to grants, streamline loan guarantees, and provide $100 million in mandatory funding over five years.

“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 Congresswoman 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.”

“Iowa leads the nation in renewable fuels because our producers are constantly innovating,” said Congressman 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 “We can’t let outdated federal grant programs hold them back.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.”

The Ag BIO Act 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.”

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. 

As a member of the House Committee on Agriculture, Congresswoman Budzinski has established herself as a bipartisan leader in supporting biofuels production and family farmers across Central and Southern Illinois. She previously introduced a number of bills to promote the future of homegrown biofuels, including the Nationwide Consumer and Fuel Retailer Choice Act, Year-Round E15 Act, Next Generation Fuels Act, Sustainable Aviation Fuels Accuracy Act, and Fuels Parity Act.

Text of the Ag BIO Act can be found here.

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