USDA awards $8.8 million under Advanced Biofuel Payment Program

By Erin Voegele | June 01, 2016

On May 27, the USDA announced more than $8.8 million in awards through its Advanced Biofuel Payment Program, which makes payments to biofuels producers based on the amount of advanced biofuels produced from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include crop residue, food and yard waste, vegetable oil and animal fat. Eligible fuels include wood pellets, biodiesel, advanced and cellulosic ethanol, and biogas. 

The program was established by the 2008 Farm Bill. To date, the USDA has made $308 million in payments to 382 producers in 47 states and territories. These payments have produced enough biofuel to provide more than 391 billion kilowatt hours of electric energy.

 "Advanced biofuels expand America's energy options and increase our sources of homegrown, renewable energy," said Agriculture Secretary Tom Vilsack. "These payments not only help to spur biofuel production, but also protect the environment and help create jobs by building a renewable energy economy in rural areas."

Advanced biofuel producers that received payments through this round of funding for advanced ethanol include:

Usl Parallel Products of California: $845
Quad County Corn Processors Co-Op: $2,011l
Central Indiana Ethanol LLC:
Arkalon Ethanol LLC: $1,061
Bonanza Bioenergy LLC: $601
Diamond Ethanol LLC: $1,013
Parallel Products of Kentucky Inc.: $976

A full list of advanced biofuel producers that received payments through the current round of funding can be downloaded from the USDA website