Funds Available to Promote Rural Biofuel and Bioenergy Production

Posted on 03/17/2010 at 12:00 AM by Christa Hartsook

Agriculture Secretary Tom Vilsack announced that Fiscal Year (FY) 2009 funding is available again through three USDA programs to promote increased production of biofuel and bioenergy. The programs are authorized under the Food, Conservation and Energy Act of 2008 (The Farm Bill).

  • Applications for remaining FY 2009 funding under the Biorefinery Assistance Program (Section 9003), which uses loan guarantees to develop, construct, and retrofit commercial-scale biorefineries, must be received by June 1, 2010.
  • Applications are also being accepted for remaining FY 2009 funding under the Repowering Assistance Program (Section 9004), which provides for payments to biorefineries (that were in existence when the Farm Bill was passed) to replace the use of fossil fuels in their operations with renewable energy from biomass. Biorefineries interested in obtaining funding must apply by June 15, 2010.
  • Those producers eligible under the Bioenergy Program for Advanced Biofuels (Section 9005) may also apply to receive payment from remaining FY 2009 funds. Applications must be received by May 30, 2010. During the first round, the Department awarded funding to 123 recipients in 34 states to accelerate the production and usage of advanced biofuels.

Under Section 9005, the Bioenergy Program for Advanced Biofuels, payments are made to eligible producers in rural areas to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat. Information on how to apply for payments can be found in the March 12, 2010, Federal Register. Information on how to apply for funding under Sections 9003 and 9004 is also available in the March 12, 2010 Federal Register or by going to http://www.access.gpo.gov/su_docs/fedreg/a100312c.html#Rural%20Business-Cooperative%20Service.

Categories: Renewable Energy