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Dollars Available to Kick-Start Biofuels Industry

USDA invites comments on proposed rules and programs from Rural Development.
Compiled by staff 
Published: Apr 20, 2010
Agriculture Secretary Tom Vilsack is inviting public comment on several proposed rules designed to increase the production of advanced biofuels and the development of biorefineries. The programs are authorized under the Food, Conservation and Energy Act of 2008. The proposed rules affect the following three renewable energy programs administered by USDA Rural Development: The Biorefinery Assistance Program; Repowering Assistance Payments; and Bioenergy Programs for Advanced Biofuels.

The Biorefinery Assistance Program proposed rule will establish guaranteed loan regulations to develop and construct commercial-scale biorefineries and to retrofit existing facilities using an eligible technology to develop advanced biofuels. Under the proposed rule, the maximum loan amount will be $250 million.

The Repowering Assistance Payments Program would make payments to eligible biorefineries to install new systems that encourage renewable biomass energy use and replace fossil fuels. Under the proposed rule, USDA Rural Development will propose procedures for eligible biorefineries to receive a payment equal to 50% of the cost of installing eligible systems, up to $5 million, whichever is less.

And the Bioenergy Program for Advanced Biofuels would establish a payment program for eligible producers of advanced biofuels. To be eligible, advanced biofuels must be produced from renewable biomass, excluding corn kernel starch.


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Tagged: biofuels, usda, bioenergy

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