Details to come on advanced biofuel funds

May 19, 2010

Agriculture Secretary Tom Vilsack announced May 4 that the USDA is planning to accept applications for the Biorefinery Assistance Program, the Repowering Assistance Program and the Bioenergy Program for Advanced Biofuels. Details on how to apply were to be released in early May in the Federal Register.

The Bioenergy Program for Advanced Biofuels works to support and ensure expanding production of advanced biofuels by providing payments to eligible advanced biofuels producers. Advanced biofuels are derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas (including landfill gas and sewage waste treatment gas). The advanced biofuels program is an important part of achieving the Obama administration's goal to increase biofuels production and use.

USDA's Biorefinery Assistance Program provides guaranteed loans to develop and construct commercial-scale biorefineries or to retrofit existing facilities using eligible technology for the development of advanced biofuels. The amount of a loan guaranteed for a project under this program cannot exceed 80 percent of total eligible project costs.

The Repowering Assistance Program is designed to encourage the use of renewable biomass as a replacement fuel source for fossil fuels that are used to provide process heat or power in the operation of eligible biorefineries (those in existence on June 18, 2008, the date the 2008 Farm Bill was enacted).

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