Last Updated January 26, 2010
Bioenergy Program for Advanced Biofuels
Providing incentive payments for the production of fuel derived from renewable biomass
Authorized under section 9005 of the 2008 Farm Bill, the Bioenergy Program for Advanced Biofuels retitles, renews, and extends the program formerly known as the Bioenergy Program. This program provides incentive payments to ethanol and biodiesel producers on an incremental basis to increase production. Biofuel producers entering into a contract with USDA are reimbursed based on quantity, duration and on net nonrenewable energy content.
The Bioenergy Program for Advanced Biofuels is administered by the USDA's Rural Business and Cooperative Service, Energy Division. As of this printing, guidelines to implement the program are pending.
One project example might be:
- Production of biofuels such as biodiesel, butanol, biogas or other alcohols from feedstocks such as cellulose, hemicellulose, lignin, crop residues, vegetative waste, animal waste, food waste, yard waste, vegetable oil, or animal fat.
Application and Financial Information
The 2008 Farm Bill has directed the USDA Secretary to establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under this program. Guidelines to implement the program were pending as of this printing.
The program will provide payments to eligible advanced biofuel producers to support and ensure an expanding production. The bill provides $55 million in FY 2009 and 2010, $85 million in FY 2011, and $105 million in FY 2012. An additional authorization of discretionary funds in the amount of $25 million per year may be available from FY 2009 to 2012. No more than five percent of funds made available annually may go to facilities with a total refining capacity of more than 150 million gallons per year.
Eligibility, Uses, and Restrictions
Eligible producers entering into a contract are paid based on the quantity and quality of advanced biofuel production and on the net nonrenewable energy content of the advanced biofuel. Payment amount will depend on the number of producers participating in the program, the amount of advanced biofuels being produced, and the amount of funds available.
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