Provides for payments to be made to eligible Advanced Biofuel Producers to
support and ensure an expanding production of advanced biofuels.
Terms and Conditions:
Eligible applicants are entities that produce and sell eligible advanced
biofuel, regardless of the location of the production facilities or U.S.
Program was created in the 2008 Farm Bill (Federal Catalog Number
Advanced biofuels are typically fuels produced from renewable biomass
other than corn kernel starch such as biofuel derived from cellulose, sugar
and starch, hemicelluloses, or lignin, waste material, biogas, butanol,
diesel-equivalent fuel, etc.
Producers who produce and sell advanced biofuels may enter into
contracts for quarterly production payments. One time additional
incentive payments may be made to certain producers who increase advanced
biofuel production over the previous year's production.
The payments are made on a $/BTU basis. The amount of each payment
will depend on: 1) the number of Eligible Advanced Biofuel Producers
participating in the program; 2) the amount of Advanced Biofuels being
produced by such Advanced Biofuel Producers; and 3) the amount of funds
available in the given fiscal year.
Producers must first enroll in the program by the established deadlines.
The Agency will then make an eligibility determination and issue eligible
producers a contract for execution. Once executed by the producer and
the Agency, the producer will be required to submit payment applications to
the agency each quarter. Quarterly payment will be made on eligible
advanced biofuel produced during that quarter. If applicable, an
incentive payment for increased production over the past fiscal year's
production of eligible advanced biofuel will be made near the end of the
The enrollment period is October 1 through October 31 of the fiscal year
for which payment is sought.