Provides loan guarantees for the development, construction and retrofitting of commercial-scale biorefineries that produce advanced biofuel, and grants to help pay for the development and construction costs of demonstration-scale biorefineries to demonstrate the commercial viability.  Provides $75 million in FY 2009 and $245 million in FY 2010 for commercial-scale biorefinery loan guarantees.  It also authorizes discretionary funding of $150 million per year starting in FY 2009 and continuing through FY 2012 for both demonstration- and commercial- scale biorefineries.