Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program
Funding rescinded by $18 million over the 10-year window. Program not eliminated, but funding floor cut. Funding shifts to BioPreferred.
What it does
The Biorefinery Assistance Program (full name: Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program) provides loan guarantees for the development, construction, and retrofit of commercial-scale biorefineries.
The program targets:
- Advanced biofuel facilities
- Renewable chemical production
- Biobased product manufacturing
Loan guarantees can cover up to 80% of project costs (with caps).
What changed in the Farm Bill 2.0
Funding rescinded by $18M
The program has $18 million in funding rescinded over the 10-year window. The program isn’t eliminated, but its funding floor is reduced.
Why the cut
The cut funds the BioPreferred Program extension. The reasoning:
- BioPreferred has stable, demonstrable demand
- Biorefinery has been underutilized in recent years
- Industrial biorefining markets have shifted
Critics’ view
The biorefinery industry argues that:
- The cut signals reduced federal commitment
- Loan guarantees are leverage, small appropriations support large projects
- Cutting funding when the bioeconomy needs scale-up is shortsighted
Who it matters for
- Biorefinery operators: funding floor cut
- Renewable chemical companies
- Advanced biofuel developers
- Project finance partners: fewer guaranteed projects