Sept 30, 2020 The USDA Advanced Biofuel Payment Program opens tomorrow for Fiscal Year 2021. Its goal is to increase US energy independence by increasing the supply of renewable energy in the public sector. The application window is open from Oct. 1 to Oct 30 so time is short!
The USDA is strongly advising applicants to conduct research before submitting their applications. Christianson PLLP can assist all types of producers with their applications and requests for quarterly payments.
Applications & Eligibility
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, governmental entities, schools and other types of educational facilities, 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.
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. For each producer, the Agency will convert the production into British Thermal Unit (BTU) equivalent. The payment amount will depend 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.
Reach out to the experts at Christianson to help you get started.
More information is available on the USDA’s Advanced Biofuel Payment Program’s website.
With any questions about this program or with specific questions, reach out to our experts!