Advanced Biofuel Payment Program – Financing
The Agency will make available each fiscal year an actual production payment and an incremental production payment to eligible producers.
Actual production - Participating producers will be paid on a quarterly basis for the actual quantity of eligible advanced biofuel produced and sold during the quarter.
Incremental production - For each eligible advanced biofuel facility, the Agency will make an end-of-the-year payment for that facility’s incremental production.
Incremental production calculation - An additional Incremental Production Payment will be calculated at the end of fiscal year based upon documentation of increased production of eligible advanced biofuel over the previous fiscal year.
The Incremental Production rate will be calculated so that all of the incremental production funds available will be distributed equally on a per BTU basis.
To be eligible to receive incremental production payments, producers must meet the following requirements:
- The facility produced an eligible advanced biofuel in the year preceding the fiscal year in which payment is sought
- The facility had fewer than 20 business days of non-production of eligible advanced biofuels in the preceding year
- The quantity of eligible advanced biofuels in the fiscal year in which payment is sought must be greater than the actual quantity of eligible advanced biofuel produced and sold in the preceding year
- Cannot produce a solid advanced biofuel