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Expands an existing USDA rural energy program to support advanced biofuels, renewable chemicals, and biobased product manufacturing by adding competitive grant funding for pilot and demonstration biorefineries and updating loan guarantee authorities. It sets cost-share limits for grants, allows the Secretary to waive certain feasibility-study requirements for proven technologies, requires a priority scoring system for grant awards, and authorizes $40 million per year for fiscal years 2025–2029 to carry out the program.
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Amends Section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103).
Modifies the purpose language in subsection (a) to include support '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'.
In subsection (b)(1), replaces 'end-user products' with 'end-user products, renewable chemicals, and biobased products' to expand the list of covered products.
In subsection (c) the Secretary, subject to funding, shall make available to eligible entities: (1) guarantees on a year-round basis; and (2) grants, on a competitive basis, to develop, construct, or retrofit pilot or demonstration-scale biorefineries to demonstrate commercial viability of processes converting renewable biomass to advanced biofuels, renewable chemicals, and biobased products (in accordance with the new subsection (e)).
Changes eligibility and application review rules in subsection (d): removes certain subparagraphs, redesignates others, and requires that in approving an application for a loan guarantee under subsection (c)(1) the Secretary follow the revised approval clause and may waive the feasibility study for proven or commercially available technologies.
Introduced July 24, 2025 by Amy Klobuchar · Last progress July 24, 2025
Who is affected and how:
• Biorefinery developers and manufacturers: Directly benefit from new competitive grant funding for pilot and demonstration projects and expanded access to USDA loan guarantees, lowering early-stage financing barriers.
• Manufacturing and industrial facility operators (including renewable chemicals and biobased product manufacturers): Gain new federal financing and grant opportunities to build or retrofit facilities, potentially accelerating commercialization and job creation.
• Farmers and feedstock suppliers: May see increased demand for biomass and agricultural residues as feedstocks, supporting rural incomes and local supply chains.
• Rural communities and local economies: Stand to gain jobs, investment, and economic activity if pilot/demo projects scale to commercial operations; projects may also increase local tax base and infrastructure needs.
• USDA and program administrators: Will need to design solicitations, scoring criteria, and oversight systems; permitting feasibility-study waivers requires careful risk management to avoid funding underperforming projects.
• Private investors and lenders: Loan guarantees and grants can reduce perceived risk and attract private capital, but waiving feasibility studies can raise development risk requiring stronger underwriting elsewhere.
Overall, the legislation is intended to accelerate deployment of lower-emission fuels and biobased manufacturing in rural areas by lowering early-stage financing hurdles, while creating new administrative responsibilities and some programmatic risk that USDA will need to manage through selection criteria and oversight.
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Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced in Senate
