Reps. Zach Nunn, R-Iowa, and Nikki Budzinski, D-Ill., on May 7 introduced legislation that aims to update USDA’s Section 9003 program to expand access to grants, streamline loan guarantees and provide $100 million in mandatory funding over five years. 

The 9003 program, also known as the USDA’s Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program, provides loan guarantees to assist with the development, construction, and retrofitting of new and emerging technologies for advanced biofuels, renewable chemicals and biobased products. 

Updates included in the Agricultural Biorefinery Innovation and Opportunity Act (Ag BIO Act) would update the program to allow year-round applications and waive feasibility studies for proven technologies. The bill also aims to establish a new competitive grant program to help build and expand biorefineries focused on producing ultra-low carbon and zero-carbon ethanol, renewable chemicals and other advanced biofuel products. 

In addition, provisions included in the bill would create a priority scoring system for grant applications that evaluates environmental impact, rural economic development, scalability, and contributions to domestic energy. The bill would also ensure a 60/40 federal cost-sharing model to encourage private investment in materials, research and development of new bioproducts. The legislation would provide $100 million in mandatory funding for the Section 9003 program through fiscal year (FY) 2030.

Similar legislation has been introduced in the past, including a version of the bill introduced Sens. Amy Klobuchar, D-Minn., and Jerry Moran, R-Kan., in late 2023.

A full copy of the Agricultural Biorefinery Innovation and Opportunity Act is available on Nunn’s website.