Rural Development Biofuels Programs from the USDA supports expansion of biofuels by providing payments to biorefineries and biofuel producers, and providing loan guarantees for biorefineries. Programs include
- Bioenergy Program for Advanced Biofuels,
- Biorefinery Assistance Program, and
- Repowering Assistance Program.
The Bioenergy for Advanced Biofuels Program offers payments to eligible 'advanced biofuel' producers for the production of fuel from renewable biomass (excluding corn starch). Renewable biomass crops include cellulose, sugar and starch (other than ethanol derived from corn kernel starch), hemicelluloses, lignin, waste materials, biogas, butanol, diesel-equivalent fuel, sugarcane, and nonfood crops such as poplar trees or switchgrass.
The Biorefinery Assistance Program assists in the development of new and emerging technologies for the development of advanced biofuels. The program offers loans to fund the development, construction, and retrofitting of commercial-scale biorefineries using eligible technology. The maximum loan guarantee is $250 million.
The Repowering Assistance Program offers subsidies to biorefineries for projects that replace fossil fuel use with renewable biomass, or that generate energy from renewable biomass. The program will provide reimbursement payments for eligible project costs of the renewable biomass system during the construction phase of the repowering project.