§8103 Biorefinery, renewable chemical, and biobased product manufacturing assistance

Summary

Provides money help for building and updating commercial biorefineries and related manufacturing so the United States can use more advanced biofuels, renewable chemicals, and biobased products. The goal is to boost energy independence, protect health and the environment, open new markets for farm and forestry products and waste, and create rural jobs. Key terms: biobased product manufacturing — building or upgrading commercial equipment to turn biorefinery outputs into finished products; eligible entity — individuals or groups that can apply (like farmers, cooperatives, tribes, universities, labs, public utilities, and others); eligible technology — a technology already used at commercial scale or shown to have commercial potential in a biorefinery that makes advanced biofuels, renewable chemicals, or biobased products. The Secretary can guarantee loans for eligible projects. Applications get scored and only projects above a set minimum score are approved. Approval requires an independent third‑party feasibility study. Scoring factors include market for the fuel and byproducts, local competition, new feedstock use, work with producer groups, the applicant’s financial commitment, environmental and public health benefits, lack of harm to existing plants, rural economic impact, local ownership, and whether the project can be copied elsewhere. The Secretary must try to fund a diverse mix of projects. Loan limits and rules: a guaranteed loan can have a principal up to $250,000,000. Loans generally cannot exceed 80% of project costs and must be reduced by other direct federal funding; the Secretary may guarantee up to 90% of principal and interest. Half of each fiscal year’s loan guarantee funds must be kept for the second half of the year. The Secretary must consult the Energy Department and require that construction workers be paid local prevailing wages under federal law. Funding details: from the Commodity Credit Corporation, $100,000,000 was for FY2014; $50,000,000 for each of FY2015 and FY2016; $50,000,000 for FY2019; and $25,000,000 for FY2020, with up to 15% of the FY2014–2015 amounts allowed for biobased product manufacturing. An extra $75,000,000 per year was authorized for FY2014–FY2023. For FY2022 the law also provided three additional pools: $1,000,000,000 (available until September 30, 2031) for loans under the Rural Electrification Act with up to 50% possible loan forgiveness (the Secretary may set limited waivers), $500,000,000 (available until September 30, 2031) for competitive grants (Federal share up to 75%) to upgrade biofuel blending and storage infrastructure and heating oil distribution centers, and $9,700,000,000 (available until September 30, 2031) to help eligible rural electric cooperatives buy or deploy renewable, zero‑emission, carbon capture, or energy‑efficiency projects (no single entity may get more than 10% of that amount and grants may be no more than 25% of project costs). The Secretary may not approve loans or grants that would cause payments after September 30, 2031.