§8103 Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance

Summary

Provides loan guarantees, grants, and other help to build and update commercial biorefineries and related factories so the United States can make advanced biofuels, renewable chemicals, and biobased products. The program aims to boost energy independence, protect health and the environment, open new markets for farm and forest products and waste, and create rural jobs. Key terms: "biobased product manufacturing" — building or updating factories to turn biorefinery outputs into end products; "eligible entity" — people or groups like businesses, tribes, universities, co-ops, labs, or governments that can apply; "eligible technology" — a technology already working at commercial scale or shown to have real commercial potential for making advanced biofuels, renewable chemicals, or biobased products. The Secretary must offer loan guarantees to eligible entities for commercial-scale projects, use a priority scoring system and an independent feasibility study to pick projects, and consider factors like market demand, location, new feedstocks, producer partnerships, private funding, environmental and health benefits, effects on existing plants, rural economic impact, local ownership, and whether the project can be copied. The Secretary should ensure a diverse mix of projects and consult with the Secretary of Energy. Contractors on funded construction must be paid local prevailing wages as set by the Secretary of Labor. Loan and funding rules: a guaranteed loan may not be more than $250,000,000. Usually the guarantee covers up to 80 percent of project costs, reduced by other federal funding; the Secretary may guarantee up to 90 percent of principal and interest. Half of the yearly loan-guarantee funds must be held for the second half of the fiscal year. From Commodity Credit Corporation funds the exact amounts reserved for loan guarantee costs are $100,000,000 for fiscal year 2014; $50,000,000 for each of fiscal years 2015 and 2016; $50,000,000 for fiscal year 2019; and $25,000,000 for fiscal year 2020, with up to 15 percent of the 2014–2015 funds allowed for biobased product manufacturing. Congress also authorized $75,000,000 per year for fiscal years 2014 through 2023. Separate FY2022 appropriations include $1,000,000,000 (available until September 30, 2031) for certain Rural Electrification Act loans (forgivable up to 50 percent under rules the Secretary sets, and the Secretary may set criteria to waive that 50 percent limit), $500,000,000 (available until September 30, 2031) for competitive grants (federal share up to 75 percent) to upgrade biofuel blending and distribution infrastructure, and $9,700,000,000 (available until September 30, 2031) to help eligible rural electric cooperatives reduce emissions through renewables, zero-emission systems, carbon capture, or efficiency projects (no one entity may get more than 10 percent of that amount and grants may not exceed 25 percent of project cost). The Secretary may not make loans or grants that would result in payments after September 30, 2031.