The USDA announced March 14 that it is now accepting applications for three funding programs related to biofuel production—the Biorefinery Assistance Program, the Repowering Assistance Program and the Bioenergy Program for Advanced Biofuels. Secretary of Agriculture Tom Vilsack said the funding provided through these programs— loan guarantees for new or retrofitted biorefineries, financial assistance for fuel switching from fossil fuels to renewable biomass, and payments to reward the production of advanced biofuels—will result in job creation and assist in the United States’ goal to become energy independent. “These investments will help spur new technologies that will enable us to reduce reliance on fossil fuels and build a strong renewable energy industry in rural America that will enable our nation to ‘out-innovate’ its competitors,” he said.

Approximately $463 million is available for loan guarantees in fiscal year (FY) 2011 under the Biorefinery Assistance Program. The program is meant to assist in developing and constructing commercial-scale biorefineries and to retrofit existing facilities to produce advanced biofuels using previously defined eligible technologies. In January, the USDA awarded three cellulosic ethanol projects, representing 73 MMgy of ethanol, $405 million in loan guarantees under the FY 2010 funding program. The latest round of applications is expected to result in approximately 4-5 projects receiving loan guarantee awards, according to the USDA. Applications must be filed by May 10. The agency anticipates awarding loan guarantees on Sept. 30. Instructions for submitting applications are available at www.rurdev.usda.gov/BCP_Biorefinery.html.

Biorefinery operators seeking to convert their fuel intake from fossil fuels to renewable biomass may apply to receive financial assistance for the project through the Repowering Assistance Program. The USDA is making approximately $25 million available in FY 2011 to aid producers in replacing fossil fuel systems with biomass systems, including costs associated with equipment, installation, engineering, design, site plans, professional fees, permits and financing fees. 

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