USDA Notice of Funds Availability and Proposed Rulemaking for Biorefinery Assistance Program

On November 20, U.S. Secretary of Agriculture Ed Schafer announced a notice of funds availability (NOFA) and a proposed rulemaking for the Biorefinery Assistance Program. Created in the Food, Conservation, and Energy Act of 2008 (P.L. 110-246), the Biorefinery Assistance Program (Sec. 9003) provides loan guarantees for the development and construction of commercial-scale biorefineries and grants for demonstration-scale biorefineries. Under this announcement, funds will be made available for loan-guarantees only. The Farm Bill provides mandatory funding of $75 million in FY09 and $245 million in FY10 for loan guarantees for commercial-scale biorefineries. Available funds cover the development and construction of new commercial-scale biorefineries or the retrofitting of existing facilities to produce advanced biofuels. The maximum loan (principal plus interest) eligible for loan guarantees is $250 million. Loan guarantees can cover up to 80 percent of loans less than $80 million; 70 percent of loans between $80 and $125 million; and 60 percent of loans greater than $125 million. More information about eligibility and application procedures can be found in the Federal Register notice (see below).

Applications for loan guarantees in the first half of FY09 are due by December 31, 2008. Applications for the second half of FY09 are due between March 1, 2009 and April 30, 2009.

The U.S. Department of Agriculture is also seeking comments on proposed rules for the Biorefinery Assistance Program. Comments are being solicited on long-term interpretation of legislative language, as well as implementation of the program. Comments on the proposed rulemaking are due by January 20, 2009. Details on submitting comments, as well as specific areas in which USDA is seeking input, can be found in the Federal Register notice (see below).