Advanced Biofuel Payment Program in Michigan

The goal of the Advanced Biofuel Payment Program in Michigan is to support and increase the production of advanced biofuels, enhance American energy independence, and expand the private sector supply of renewable energy. The program is authorized under 7 U.S.C. 8105 and administered by USDA Rural Development under 7 CFR Part 4288, Subpart B.

Any entity that produces and sells an advanced biofuel is eligible to apply. Eligible producers include individuals, corporations, companies, foundations, associations, labor organizations, firms, partnerships, societies, joint-stock companies, governmental entities, schools and other educational facilities, groups of organizations, or nonprofit entities. An entity that merely blends or combines advanced biofuels into a blended biofuel is not eligible as an advanced biofuel producer.

To be eligible, biofuels must meet the definition of advanced biofuel in 7 CFR Part 4288.102, exist in liquid, gas, or solid form, and be derived from renewable biomass other than corn kernel starch. Furthermore, the biofuel must be a final product produced in the United States and sold in arm's-length commercial transactions where the buyer and seller act independently without any relationship.

To apply, applicants should consult with their State Rural Development Energy Coordinator to review program guidelines and assemble required documentation. Enrollment applications are accepted annually from October 1 through October 31. Following enrollment, participating producers receive quarterly payments based on the actual quantity of eligible advanced biofuel produced during each quarter.