Program 101

Program Status: This program is undergoing a regulatory update to comply with the 2018 Farm Bill. Please visit us again.

Application Period Ended: October 31, 2018.

What does this program do?
This program’s goal is to increase the production of advanced biofuels through the purchase of finished advanced biofuel products.

Who may apply?
Any entity that produces and sells advanced biofuel is eligible to apply. An advanced biofuel producer can be: an individual, corporation, company, foundation, association, labor organization, firm, partnership, society, joint stock company, group of organizations or a nonprofit entity that produces and sells an advanced biofuel.

An entity that blends or otherwise combines advanced biofuels into a blended biofuel is not considered an advanced biofuel producer under this program. Eligible advanced biofuels:

  • Must meet the definition of an advanced biofuel in 7 CFR Part 4288.102.
  • Are a liquid, gas or solid.
  • Must be derived from renewable biomass, other than corn kernel starch.
  • Must be a final product.
  • Are produced in the United States.
  • Are ones where the buyers and sellers act independently and have no relationship to each other.

What funding is available?

  • Quarterly payments are made for the actual quantity of eligible advanced biofuel produced during the quarter.
  • Annual incremental payments are available for producers who increase production over the previous fiscal year (this excludes forest biomass advanced biofuel production).

Are there other requirements?
To be eligible for the incremental payment, an advanced biofuel facility must have:

  • Produced advanced biofuels in the year prior to the fiscal year in which the payment is sought.
  • Had fewer than 20 days (excluding weekends) of non-production in the year prior to the fiscal year in which the payment is sought.

What are the payment terms?

  • Producers will be paid on a quarterly basis for the actual quantity of eligible advanced biofuel produced during the quarter.
  • For each producer, the Agency will convert the production into British Thermal Unit (BTU) equivalent.
  • The payment amount depends on the number of eligible producers, the amount of advanced biofuel produced and the amount of funds available during the fiscal year.
  • There is no minimum or maximum payment.

How do we get started?
Applications are accepted in October of each year. To enroll, you must file an application by October 31.

Who can answer questions?
Contact your State Rural Development Energy Coordinator.

What law governs this program?

Why does USDA Rural Development do this?
This program helps increase American energy independence. It increases the private sector supply of renewable energy.

NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.

Forms & Resources

NOTE: If state specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Rural Development Energy Coordinator before attempting to fill out any forms or applications. This will save you valuable time in completing your application.

Other Resources

Contacts

Grady Borth (Bismarck)
Business Energy Coordinator
701.530.2047

Dennis Rodin (Bismarck)
Business & Cooperative Program Director
701.530.2068