Agricultural Biorefinery Innovation and Opportunity Act of 2023

Bill: 118-hr-6413
Sponsor: full_name: Rep. Nunn, Zachary [R-IA-3]
Introduced: 2023-11-14
Policy area: Agriculture and Food
Subjects: Agricultural research

Alternative and renewable resources

Chemistry

Energy efficiency and conservation

Industrial facilities

Manufacturing

Motor fuels

Research and development
Latest action: action_date: 2024-01-24
text: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

Summaries:

tv_txt: I 118th CONGRESS 1st Session H. R. 6413 IN THE HOUSE OF REPRESENTATIVES November 14, 2023 Mr. Nunn of Iowa (for himself, Ms. Budzinski , and Mr. Van Orden ) introduced the following bill; which was referred to the Committee on Agriculture A BILL 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.

1. Short title This Act may be cited as the Agricultural Biorefinery Innovation and Opportunity Act of 2023 . 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)(1)— (A) by striking subparagraphs (A) and (C); (B) by redesignating subparagraphs (B) and (D) as subparagraphs (A) and (B), respectively; (C) 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 (D) in subparagraph (B) (as so redesignated), by striking loan guarantee applications and inserting applications for loan guarantees under 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) $100,000,000 for each of fiscal years 2024 through 2028. ; 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 2024 through 2028 under subparagraph (A) ; and (B) in paragraph (2), by striking 2023 and inserting 2028 ; (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) .