July 24, 2025
Ms. Klobuchar (for herself and Mr. Moran) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry
To amend the Farm Security and Rural Investment Act of 2002 to improve biorefinery, renewable chemical, and biobased product manufacturing assistance, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Agricultural Biorefinery Innovation and Opportunity Act of 2025
.
Sec. 2. Biorefinery, renewable chemical, and biobased product manufacturing assistance
Section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended—
(1)
in subsection (a), in the matter preceding paragraph (1), by striking to assist
and inserting to develop advanced biofuels (which, for purposes of this section, shall include ultra-low-carbon bioethanol and zero-carbon bioethanol), renewable chemicals, and biobased product manufacturing and assist
;
(2)
in subsection (b)(1)—
(A)
by striking technologically new
; and
(B)
by striking end-user products
and inserting end-user products, renewable chemicals, and biobased products
;
(3)
in subsection (c)—
(A)
by striking The Secretary shall make available to eligible entities guarantees
and inserting the following:
Subject to the availability of funding, the Secretary shall make available to eligible entities—
(1)
on a year-round basis, guarantees;
(B)
in paragraph (1) (as so designated), by striking the period at the end and inserting , in accordance with subsection (d); and
; and
(C)
by adding at the end the following:
(2)
grants, on a competitive basis, to develop, construct, or retrofit pilot or demonstration-scale biorefineries to demonstrate the commercial viability of 1 or more processes for converting renewable biomass to advanced biofuels, renewable chemicals, and biobased products in accordance with subsection (e).;
(4)
in subsection (d)—
(A)
in paragraph (1)—
(i)
by striking subparagraphs (A) and (C);
(ii)
by redesignating subparagraphs (B) and (D) as subparagraphs (A) and (B), respectively;
(iii)
in subparagraph (A) (as so redesignated)—
(I)
by striking In approving a loan guarantee application
and inserting the following:
(i) In general
In approving an application for a loan guarantee under subsection (c)(1); and
(II)
by adding at the end the following:
(ii) Waiver
The Secretary may waive the feasibility study under clause (i) for proven or otherwise commercially available technologies.; and
(iv)
in subparagraph (B) (as so redesignated), by striking loan guarantee applications
and inserting applications for loan guarantees under subsection (c)(1)
; and
(B)
in paragraph (2)—
(i)
in subparagraph (A), by striking $250,000,000
and inserting 10 percent of the total amount made available under subsection (g) for the fiscal year in which the loan is guaranteed;
; and
(ii)
by striking subsection (c)
each place it appears and inserting subsection (c)(1)
;
(5)
by redesignating subsection (e) as subsection (k);
(6)
by inserting after subsection (d) the following:
(e) Grants
(1) Selection criteria
(A) In general
In approving applications for grants under subsection (c)(2), the Secretary shall establish a priority scoring system that assigns priority scores to each application and only approve applications that exceed a specified minimum score, as determined by the Secretary.
(B) Feasibility
(i) In general
In approving an application for a grant under subsection (c)(2), the Secretary shall determine the technical and economic feasibility of the project based on a feasibility study of the project described in the application conducted by an independent third party.
(ii) Waiver
The Secretary may waive the feasibility study under clause (i) for proven or otherwise commercially available technologies.
(C) Scoring system
The priority scoring system established under subparagraph (A) shall consider, with respect to a project proposed in an application for a grant under subsection (c)(2)—
(i)
the potential market for the advanced biofuel, renewable chemical, or biobased product, and the byproducts produced under the project;
(ii)
the level of financial participation by the eligible entity, including support from non-Federal and private sources;
(iii)
whether the eligible entity is proposing to use—
(I)
a feedstock not previously used in the production of advanced biofuels; or
(II)
a feedstock, process, or technology in an innovative manner in the production of renewable chemicals or biobased products;
(iv)
whether the eligible entity is proposing to work with producer associations or cooperatives;
(v)
whether the eligible entity has established that the adoption of the process proposed in the application will have a positive impact on resource conservation, public health, and the environment;
(vi)
the potential for rural economic development;
(vii)
whether the project can be replicated;
(viii)
scalability for commercial use; and
(ix)
in the case of an advanced biofuels project, the contribution of the project to domestic energy security.
(2) Cost sharing
(A) Limits
The amount of a grant awarded under subsection (c)(2) shall not exceed an amount that is 60 percent of the cost of the project carried out using the grant.
(B) Non-Federal share
The non-Federal share of the cost of a project may be provided in the form of cash or material, subject to the condition that the material provided does not exceed 30 percent of the non-Federal share.;
(7)
in subsection (g)—
(A)
in paragraph (1)—
(i)
in subparagraph (A)—
(I)
in the matter preceding clause (i), by inserting and grants
after loan guarantees
;
(II)
in clause (iii), by striking and
at the end;
(III)
in clause (iv), by striking the period at the end and inserting ; and
; and
(IV)
by adding at the end the following:
(v)
$40,000,000 for each of fiscal years 2025 through 2029.; and
(ii)
in subparagraph (B), by striking Of the total
and all that follows through subparagraph (A)
and inserting Of the total amount of funds made available for each of fiscal years 2025 through 2029 under subparagraph (A)
; and
(B)
in paragraph (2), by striking 2023
and inserting 2029
;
(8)
in subsection (h)(1), by striking subsections (a) through (e), and (g)
and inserting subsections (a) through (e), (g), and (k)
;
(9)
in subsection (i)(1), by striking subsections (a) through (e) and subsection (g)
and inserting subsections (a) through (e), (g), and (k)
; and
(10)
in subsection (j)(1), by striking subsections (a) through (e) and (g)
and inserting subsections (a) through (e), (g), and (k)
.