II 

117TH CONGRESS 

1ST SESSION S. 2271 

To amend the Farm Security and Rural Investment Act of 2002 to provide 

grants for eligible entities for activities designed to expand the sales 

and use of biofuels derived from agricultural feedstocks produced in 

the United States, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 24, 2021 

Ms. KLOBUCHAR (for herself and Ms. ERNST) introduced the following bill; 

which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Farm Security and Rural Investment Act 

of 2002 to provide grants for eligible entities for activities designed to expand the sales and use of biofuels 

derived from agricultural feedstocks produced in the 

United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Biofuel Infrastructure 

5 and Agricultural Product Market Expansion Act of 2021’’. 


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1 SEC. 2. GRANTS FOR EXPANDING DOMESTIC BIOFUEL CON2 SUMPTION. 

3 (a) FINDINGS.—Congress finds the following: 

4 (1) Biofuels are an immediately available path 

5 toward decarbonizing the transportation sector while 

6 driving rural economic development and growth, sta7 bilizing feedstock prices, and providing additional 

8 markets for agricultural products. 

9 (2) United States farmers are producing record 

10 amounts of feedstock for renewable fuels, but mar11 ket disruptions and fluctuations due to the COVID12 19 pandemic have created uncertain times for 

13 United States feedstock producers. 

14 (3) Biofuels, which contribute to energy secu15 rity, reduce air pollution, and support rural eco16 nomic development, are an important market for 

17 United States feedstock producers. 

18 (4) According to the Alternative Fuels Data 

19 Center of the Department of Energy, 39 percent of 

20 the United States corn crop was refined into ethanol 

21 in 2019. 

22 (5) According to the Energy Information Ad23 ministration, 30 percent of United States soybean oil 

24 was used for biodiesel production in 2019. 


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1 (6) Higher blends of biofuels like E15 and B20 

2 are dispensed using blender pumps or dedicated E15 

3 and B20 pumps. 

4 (7) Infrastructure constraints and other bar5 riers currently limit the market for biofuels and the 

6 feedstocks used to produce biofuels. 

7 (b) BIOFUEL INFRASTRUCTURE AND AGRICULTURAL

8 PRODUCT MARKET EXPANSION GRANT PROGRAM.—Title 

9 IX of the Farm Security and Rural Investment Act of 

10 2002 (7 U.S.C. 8101 et seq.) is amended by adding at 

11 the end the following: 

12 ‘‘SEC. 9015. BIOFUEL INFRASTRUCTURE AND AGRICUL13 TURAL PRODUCT MARKET EXPANSION 

14 GRANT PROGRAM. 

15 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec16 tion, the term ‘eligible entity’ means— 

17 ‘‘(1) a State or unit of local government; 

18 ‘‘(2) a Tribal government; 

19 ‘‘(3) an authority, agency, partnership, or in20 strumentality of an entity described in paragraph 

21 (1) or (2); and 

22 ‘‘(4) a group of entities described in paragraphs 

23 (1) through (3). 

24 ‘‘(b) ESTABLISHMENT.—Not later than 1 year after 

25 the date of enactment of this section, the Secretary shall 


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1 establish a grant program to award grants to eligible enti2 ties to carry out the activities described in subsection (f). 

3 ‘‘(c) PURPOSE.—The purposes of the grant program 

4 established under subsection (b) shall be— 

5 ‘‘(1) to increase the use of domestic agricultural 

6 crops by expanding or aiding in the expansion of do7 mestic biofuel markets; 

8 ‘‘(2) to aid in the development of new and addi9 tional biofuel markets, marketing facilities, and uses 

10 for feedstock derived from agricultural crops and 

11 other biomass; 

12 ‘‘(3) to stabilize prices in agricultural markets 

13 by increasing demand for feedstock derived from ag14 ricultural crops; 

15 ‘‘(4) to boost domestic production and use of 

16 biofuels to promote rural economic development and 

17 job creation; and 

18 ‘‘(5) to support farm income by increasing de19 mand for feedstock use and production. 

20 ‘‘(d) APPLICATIONS.—An eligible entity desiring a 

21 grant under this section shall submit to the Secretary an 

22 application at the time, in the manner, and containing the 

23 information that the Secretary may require. 

24 ‘‘(e) ELIGIBILITY CRITERIA.—In selecting an eligible 

25 entity to receive a grant under this section, the Secretary 


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1 shall consider the extent to which the application of the 

2 eligible entity proposes— 

3 ‘‘(1) to convert existing pump infrastructure to 

4 deliver ethanol blends with greater than 10 percent 

5 ethanol; 

6 ‘‘(2) to diversify the geographic area selling eth7 anol blends with greater than 10 percent ethanol; 

8 ‘‘(3) to support existing or emerging biodiesel, 

9 bioheat, and sustainable aviation fuel markets that 

10 have existing incentives; 

11 ‘‘(4) to increase the use of existing fuel delivery 

12 infrastructure; 

13 ‘‘(5) to enable or accelerate the deployment of 

14 renewable fuel infrastructure that would be unlikely 

15 to be completed without Federal assistance; and 

16 ‘‘(6) to build and retrofit traditional and pipe17 line biodiesel terminal operations (including rail 

18 lines) and home heating oil distribution centers or 

19 equivalent entities— 

20 ‘‘(A) to blend biodiesel; and 

21 ‘‘(B) to carry ethanol and biodiesel. 

22 ‘‘(f) ELIGIBLE USE.—An eligible entity that receives 

23 a grant under this section may use the grant funds— 


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1 ‘‘(1) to distribute to private or public entities 

2 for costs related to incentivizing deployment of re3 newable fuel infrastructure; 

4 ‘‘(2) to convert existing pump infrastructure to 

5 deliver ethanol blends greater than 10 percent and 

6 biodiesel blends greater than 20 percent; 

7 ‘‘(3) to install fuel pumps and related infra8 structure dedicated to the distribution of higher eth9 anol blends (including E15 and E85) and higher 

10 biodiesel blends up to B100 at fueling locations, in11 cluding— 

12 ‘‘(A) local fueling stations; 

13 ‘‘(B) convenience stores; 

14 ‘‘(C) hypermarket fueling stations; and 

15 ‘‘(D) fleet facilities or similar entities; and 

16 ‘‘(4) to build and retrofit traditional and pipe17 line biodiesel terminal operations (including rail 

18 lines) and home heating oil distribution centers or 

19 equivalent entities— 

20 ‘‘(A) to blend biodiesel; and 

21 ‘‘(B) to carry ethanol and biodiesel. 

22 ‘‘(g) CERTIFICATION REQUIREMENT.—Any infra23 structure used or installed with grant funds provided 

24 under this section shall be certified by the Underwriters 


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1 Laboratory as infrastructure that distributes blends with 

2 an ethanol content of 25 percent or greater. 

3 ‘‘(h) FUNDING.— 

4 ‘‘(1) FEDERAL SHARE.—The Federal share of 

5 the total cost of carrying out a project awarded a 

6 grant under this section shall not exceed 75 percent. 

7 ‘‘(2) MAXIMUM PERCENTAGE FOR CERTAIN AC8 TIVITIES.—An eligible entity receiving a grant under 

9 this section shall ensure that Federal funds do not 

10 exceed— 

11 ‘‘(A) 75 percent of the per pump cost 

12 for— 

13 ‘‘(i) pumps that can dispense a range 

14 of ethanol blends of E85 or lower (new 

15 pumps or retrofit of existing pumps); and 

16 ‘‘(ii) dedicated E15 or E85 pumps 

17 (new pumps or retrofit of existing pumps); 

18 ‘‘(B) 50 percent of the terminal cost for 

19 terminals with B100 capabilities; or 

20 ‘‘(C) 40 percent of the per tank cost for 

21 new storage tanks and related equipment asso22 ciated with new facilities or additional capacity 

23 other than replacement of existing storage 

24 tanks and related equipment associated with ex25 isting facilities. 


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1 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to the Secretary to carry 

3 out this section $100,000,000 for each of fiscal years 2021 

4 through 2030.’’. 

Æ 


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