Advanced Biofuel Production Incentive Program

Advanced biofuels are fuels made from non-food, non-feed, sustainably-grown feedstocks and agricultural wastes.

For this production incentive program, advanced biofuels must meet the definition of the national Renewable Fuel Standard (RFS) Program, including the requirement to improve greenhouse gas emissions by 50 percent over the petroleum-based fuels they replace. However, biobutanol from cornstarch may be reimbursed without meeting RFS advanced biofuel requirements.

Eligibility

To be eligible for the Advanced Biofuel Bioincentive Program, production facilities must:

• have produced less than 23,750 million British thermal units (MMBtu) or the equivalent per quarter before July 1, 2015.
• produce at least 23,750 MMBtu or the equivalent per quarter to enter the program and during each quarter of participation.

Payment Amount and Limits

Producers of advanced biofuels will be reimbursed at a rate of:

• $2.1053 per the equivalent of MMBtu of production from cellulosic biomass, and
• $1.053 per the equivalent of MMBtu of production from sugar or starch.

Examples

Note: Total payments for an eligible producer may not exceed the equivalent of 2,850,000 MMBtu of production in a fiscal year.