The Bioenergy Program for Advanced Biofuels (BPAB) is intended to pay advanced biofuels producers to expand their production levels. Other than corn starch ethanol, nearly every other type of biofuel is eligible for the program, including ethanol, biodiesel, biogas, butanol, or biofuels derived from cellulose (like perennial grasses or agricultural residues), sugar or starches, waste materials, sugarcane, or woody biomass. The payment amount depends on the number of producers participating and the amount of advanced biofuels produced.
Rather than assisting small, rural residents or small businesses obtain financing to produce second-generation biofuels, the program instead supports large, profitable, and well-known agribusinesses. BPAB also funds mature biofuel industries such as soy biodiesel and corn-based biofuels even though corn ethanol is specifically excluded from the program. The Program is administered by the U.S. Department of Agriculture’s (USDA) Rural Development office and was established by an Executive Order in 1999.« Back to Database