Renewable chemicals include polymers, plastics, and other formulated products produced from agricultural biomass, forestry materials, other plant materials including aquatic plants, or the organic portion of solid waste.

For this production incentive program, renewable chemicals cannot be made using processes that were fully commercial before January 1, 2000.


To be eligible for the Renewable Chemical Bioincentive Program, production facilities must:

  • have produced less than 250,000 pounds per quarter before January 1, 2015.
  • produce at least 250,000 pounds per quarter to enter the program and during each quarter of participation.

Payment Amount and Limits

Producers of renewable chemicals will be reimbursed at a rate of:

  • $0.06 per pound of production from cellulosic biomass, and
  • $0.03 per pound of production from sugar, cellulosic sugar, starch, oil, or animal fat.

Production using agricultural cellulosic feedstock of perennial or cover crop biomass is eligible for a 20 percent bonus payment on each pound of chemicals produced.

Note: Total payments for an eligible producer may not exceed 99,999,999 pounds of production in a fiscal year.