The US Department of Agriculture USDA announced the availability of up to $98.6 million to support the production of advanced biofuels, and an opportunity for eligible producers to submit applications. Of the $98.6 million, $68.6 million will be available for Fiscal Year 2013 production and the remainder of approximately $30 million is for payments for production in prior fiscal years.
The payments are provided through USDA Rural Development’s Bioenergy Program for Advanced Biofuels, commonly referred to as the Advanced Biofuel Payment Program. It was established in the 2008 Farm Bill to support the expansion of advanced biofuel production. Payments are made to eligible producers based on the amount of biofuel produced from renewable biomass, other than corn kernel starch.
Examples of eligible feedstocks include crop residue; animal, food and yard waste; vegetable oils; and animal fat.
Since 2009, more than 275 eligible producers in 44 states have received payments.
Producers use the payments to offset production costs and in some instances expand their operations. For example, in 2012, Sequential-Pacific Biodiesel, a biodiesel facility based in Salem, Ore., increased its annual production by approximately 1 million gallons, or about 20%.
Sequential-Pacific primarily uses locally sourced waste vegetable oils in its production of biodiesel. The support USDA Rural Development provided through its Bioenergy Program for Advanced Biofuels helped the company buy equipment that increased the speed of production and pre-treatment of feedstock.
Producers who did not apply for payments during the October 2012 application window may now apply for payments for third and fourth quarter fiscal year 2013 production as well as for any applicable incremental production. Applications received by 11 July 2013 will be considered for Fiscal Year 2013 funds.