The USDA Advanced Biofuel Payment Program is now open for Fiscal Year 2019 and 2020. Its goal is to increase US energy independence by increasing the supply of renewable energy in the public sector. Applications must be received by the individual state offices by 4:30pm local time by February 18, 2020 for both FY 2019 + 2020. This means time is short! The USDA is strongly advising applicants to conduct research and avail themselves of training before submitting their applications. Christianson PLLP can assist all types of biofuel producers with their applications and requests for quarterly payments.
Applications & Eligibility
- Any entity that produces and sells advanced biofuel in its final form in the US is eligible to apply.
- Eligible advanced biofuel producers may submit an enrollment application during a fiscal year’s sign-up period even if the advanced biofuel facility is not currently producing, but is scheduled to start producing advanced biofuel in that fiscal year.
- Under the new program, not only liquid fuels are eligible, but gaseous and solid fuels are as well.
- While ethanol derived from corn kernel starch is still ineligible under the program, ethanol derived from corn kernel fiber is an eligible biofuel.
- Both a DUNS number and a SAM registration are required for program application.
- Additional certifications must also be included with applications.
- Production records (by feedstock) and sales records must be included with quarterly payment requests. Smaller producers can work with our experts to develop a daily production report that accurately reflects production plant operations to ensure the production eligibility requirement is met.
Funding & Restrictions
Quarterly payments are made for the actual quantity of eligible advanced biofuel produced during the quarter. $7 million per year has been set aside for FY 2019 through 2023. Additional funding restrictions have been put in place that make the program more attractive to producers using novel feedstocks. These producers who may have eschewed the application process in the past as too burdensome to be worth the small payments will find their efforts are rewarded under the new version of the program. In addition, under the new version large producers (150+ million gallons of liquid fuel) are limited to a certain percentage of the funding.
Reach out to the experts at Christianson to help you get started.