USDA Announces Funding For Two New Renewable Energy Programs

Agriculture Secretary Tom Vilsack recently announced the availability of funds for Fiscal Year 2012 for two key programs to encourage the use of renewable biomass and production of advanced biofuels. About $25 million will be made available through each program. “President Obama has laid out a new era for American energy, an economy fueled by […]

Agriculture Secretary Tom Vilsack recently announced the availability of funds for Fiscal Year 2012 for two key programs to encourage the use of renewable biomass and production of advanced biofuels. About $25 million will be made available through each program.

“President Obama has laid out a new era for American energy, an economy fueled by homegrown and alternative energy sources that will be designed and produced by American workers,” said Vilsack. “These programs support that vision by helping biorefineries use renewable biomass as a replacement fuel source for fossil fuels and supporting advanced biofuel producers as they expand production.”

The Repowering Assistance Program provides approximately $25 million in funding to biorefineries that have been in existence on or before June 18, 2008. The purpose of the program is to provide a financial incentive to biorefineries to use renewable biomass in place of fossil fuels used to produce heat or power. By providing this assistance, USDA is helping these facilities install new systems that use renewable biomass.

The amount of the payment will be based on the cost effectiveness of the renewable biomass system and the percentage reduction in fossil fuels used by that biorefinery. The maximum amount an individual biorefinery can receive under the Notice is 50% of total eligible project costs up to a maximum of $10 million.

Eligible costs must be related to construction or repowering improvements, such as engineering design, equipment installation and professional fees. The application deadline for this program to receive funds for Fiscal Year 2012 is June 1, 2012.

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