South Iowa News

U.S. Representatives Zach Nunn and Nikki Budzinski have introduced a bipartisan bill aimed at increasing biofuel production and reducing energy costs in Iowa. The Agricultural Biorefinery Innovation and Opportunity (Ag BIO) Act seeks to enhance funding for loans supporting innovation within the biofuels sector, while also addressing bureaucratic hurdles that currently raise energy costs.

Rep. Nunn emphasized the significance of the biofuels industry to Iowa's economy and national energy security, stating, "The bipartisan Ag BIO Act will eliminate bureaucratic red tape that is driving up energy costs by making it harder for biofuels producers to innovate and expand their manufacturing capacity."

Iowa leads the nation in biofuel production, contributing over $7.2 billion to its GDP and generating $3.5 billion in household income. The industry supports 57,000 jobs across the state, with nearly half of Iowa's corn used for ethanol production.

Rep. Budzinski highlighted the role of academic institutions like the University of Illinois in advancing biomanufacturing research: "By investing in our bioeconomy, we can spur innovation and expand markets for family farmers throughout the Heartland."

Currently, a U.S. Department of Agriculture program offers loans for biobased manufacturing but faces underutilization due to existing bureaucratic challenges. The Ag BIO Act proposes several improvements:

- Establishing grants for constructing or expanding biorefineries.

- Broadening eligibility for funding to include ultra-low carbon and zero-carbon bioethanol.

- Removing redundant feasibility study requirements.

To accommodate increased demand, the legislation raises annual funding for grants and loans to $100 million over five years.

The bill was introduced in the Senate by Senators Jerry Moran and Amy Klobuchar. It has garnered support from various organizations including the Corn Refiners Association, Plant Based Products Council, Ag Bioeconomy Coalition, and Ag Energy Coalition.

John Bode from the Corn Refiners Association remarked on its potential impact: "We are excited to work with Representatives Nunn and Budzinski as they champion this legislation... We look forward to seeing this bipartisan bill pass in both chambers of Congress."

James Glueck from the Plant Based Products Council expressed enthusiasm about its introduction: "This bipartisan and bicameral legislation will bolster investments in sustainable biomanufacturing... create opportunities for millions of Americans working in the plant-based products industry."

Robin Bowen from the Ag Bioeconomy Coalition noted its importance: "Now is the time to leverage our strengths... improve scalability of American bioproducts."

Lloyd Ritter from Ag Energy Coalition praised efforts towards modernization: "Biorefineries are a crucial source of economic opportunities... This legislation will secure America's leadership... speed nation's energy transformation."