S. 2467: Agricultural Biorefinery Innovation and Opportunity Act of 2025

This bill, known as the Agricultural Biorefinery Innovation and Opportunity Act of 2025, proposes several amendments to existing legislation related to the support of biorefineries, renewable chemicals, and biobased product manufacturing. The key components of the bill are detailed below.

Objectives

• To promote the development of advanced biofuels, including ultra-low-carbon and zero-carbon bioethanol.
• To support the manufacturing of renewable chemicals and biobased products.
• To enhance the financial assistance available to eligible entities involved in these sectors.

Changes to the Existing Law

• The terms and definitions used in the original legislation will be updated to reflect a broader scope, including various forms of renewable products.
• The bill will establish guarantees for financial assistance on a year-round basis rather than in a limited capacity.
• There will be the introduction of grants aimed at developing, constructing, or retrofitting pilot or demonstration-scale biorefineries.

Grants and Financial Assistance

The Secretary of Agriculture will be responsible for:

• Establishing a competitive grants program to assist projects that demonstrate the commercial viability of converting renewable biomass into advanced biofuels and other products.
• Implementing a priority scoring system for grant applications, focusing on technical and economic feasibility, market potential, and other factors.
• Allowing up to 60% of project costs to be covered by grants, with specific conditions on cost sharing.

Selection Criteria for Grants

When evaluating grant applications, the following criteria will be considered:

• The potential marketability of the product.
• Financial contributions from non-federal and private sources.
• The use of innovative feedstocks or technologies in the production process.
• Collaboration with producer associations or cooperatives.
• Positive impacts on public health, resource conservation, and environment.
• Potential for rural economic development, replicability, scalability, and contribution to domestic energy security.

Budget and Funding

The bill also proposes a budget allocation of $40 million for each fiscal year from 2025 through 2029 specifically designated for these initiatives.

Waivers and Simplifications

The Secretary will have the authority to waive certain requirements, such as the need for feasibility studies for proven or commercially available technologies, thus streamlining the process for eligible entities.

Overall Impact

By modifying the existing Farm Security and Rural Investment Act, the bill aims to bolster the biorefinery sector, increase the production of renewable energy sources, and promote sustainable agricultural practices through financial support and innovative project development.

Relevant Companies

• GE - As a major player in the energy sector, General Electric could be impacted through its involvement in renewable energy technologies and biorefinery solutions.
• DOW - Dow Chemical, as a provider of various chemical solutions, might see changes in operational focus towards renewable chemicals and biobased products.
• CPO - As a company involved in agricultural products, CPO could benefit from shifts in biorefinery technology affecting crop utilization.