Bioenergy Program

Published on AidPage by IDILOGIC on Jun 24, 2005

Administered by:

US Federal Government Agency (see all agencies)
Department of Agriculture , Farm Service Agency
CFDA #: 10.078

Purpose of this program:

The goals of the Bioenergy Program are to encourage increased purchases of eligible commodities for the purpose of expanding production of such bioenergy and support new production capacity for such bioenergy.

Possible uses and use restrictions...

Bioenergy producers may increase their purchases of eligible commodities as compared to the previous fiscal year purchases and convert that commodity into increased commercial fuel grade ethanol and biodiesel production as compared to previous fiscal year ethanol and biodiesel production. The Program defines eligible commodities as barley, corn, grain sorghum, oats, rice, wheat, soybeans, sunflower seed, canola, crambe, rapeseed, safflower, sesame seed, flaxseed, mustard seed, and cellulosic crops, such as switchgrass and short rotation trees, grown on farms, for the purpose of producing ethanol and/or biodiesel or any other commodity or commodity by-product as determined and announced by CCC used in ethanol and biodiesel production which is produced in the United States and its territories.

Who is eligible to apply...

All bioenergy producers are eligible to participate in the program. To participate, ethanol producers must provide USDA with evidence of increased production of bioenergy and increased purchase and utilization of agricultural commodities related to that increased production. Biodiesel producers must provide evidence of production and purchase and utilization of agricultural commodities related to that production.

Eligible Applicant Categories:
Eligible Functional Categories:

USDA will collect information from bioenergy producers that request payments under the Bioenergy Program as the Secretary may require to ensure that benefits are paid only to eligible bioenergy producers for eligible commodities. Bioenergy producers seeking program payments will have to meet minimum requirements by providing information concerning the production of bioenergy. Applicants must certify that they will abide by the Bioenergy Program Agreement's provisions. This program is excluded from coverage under OMB Circular No. A-87.

Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.

About this section:

This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy. For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible. Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they must satisfy.

Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs, the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.

How to apply...

Application Procedure:

The Bioenergy Program sign-up period is from August 1 through August 31, or as announced. To participate in the program, producers must complete a Bioenergy Program Agreement, Form CCC 850 and Bioenergy Program Annual Production Information, Form CCC-850 Supplement.

Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.

Award Procedure:


Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check. Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office, or by an authorized county office. The assistance may pass through the initial applicant for further distribution by intermediate level applicants to groups or individuals in the private sector.

Deadlines and process...


Bioenergy producers who expect to have eligible production at any time during a FY must enroll in the program during or before the applicable FY's sign-up period. For example, a producer with a new plant that is expected to become operational in July 2003 must enroll that plant in the program during FY 2003's sign-up period to be eligible to receive program payments on that new production during 2003.

Note: When available, this section indicates the deadlines for applications to the funding agency which will be stated in terms of the date(s) or between what dates the application should be received. When not available, applicants should contact the funding agency for deadline information.

Range of Approval/Disapproval Time

1 to 30 days.

Preapplication Coordination

There is no preapplication coordination related to this program. This program is excluded from coverage under E.O. 12372.

Note: This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units prior to the submission of a formal application to the federal funding agency.


Any participant who is subject to an adverse determination may appeal the determination by filing a written request with the Deputy Administrator at the following address: Deputy Administrator, Commodity Operations, Farm Service Agency, United States Department of Agriculture, STOP 0550, 1400 Independence Avenue, SW., Washington, DC 20250-0550. To receive consideration, the participant must file the appeal within 30 days after written notice of the decision, which is the subject of the appeal, is mailed or otherwise made available to the participant. An appeal shall be considered to have been filed when personally delivered in writing to the Deputy Administrator or when the properly addressed request, postage paid, is postmarked. The Deputy Administrator may accept and act upon an appeal even though it is not timely filed if, in the judgement of the Deputy Administrator, circumstances warrant such action.

Note: In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).



Note: In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.

Who can benefit...

Bioenergy producers.

About this section:

This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.

What types of assistance...

Direct Payments for Specified Use

Financial assistance from the Federal government provided directly to individuals, private firms, and other private institutions to encourage or subsidize a particular activity by conditioning the receipt of the assistance on a particular performance by the recipient. This does not include solicited contracts for the procurement of goods and services for the Federal government.

How much financial aid...

Range and Average of Financial Assistance

Not applicable.

Note: This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.


(Includes CCC transfer funds) From FY 03 through FY 06 estimated to be $150,000,000 per FY.

Note: The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.

Account Identification


Note: Note: This 11-digit budget account identification code represents the account which funds a particular program. This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.

Examples of funded projects...

Not applicable.

About this section

This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.

Program accomplishments...


Criteria for selecting proposals...

(1) All fuel ethanol production is eligible; however, ethanol under 200 proof will be converted to 200 proof gallons before payment calculations are made; (2) Ethanol producers must produce and sell ethanol commercially and have authority from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to produce ethanol for fuel or sell denatured ethanol rendered unfit for beverage use; (3) Biodiesel producers must produce and sell biodiesel commercially, and the biodiesel must be a mono alkyl ester manufactured in the United States that meets the American Society for Testing and Materials Standard's biodiesel standard.

Assistance considerations...

Length and Time Phasing of Assistance

The program is funded at up to $150 million each FY for FYs 2003 through 2006.

Formula and Matching Requirements

USDA will pay eligible producers up to $150 million each FY on a quarterly basis. Payments to each producer are capped at 5 percent of available funding (up to $7.5 million) each FY. USDA will base ethanol payments on the increase in ethanol production compared to the previous FY's production and biodiesel payments on the biodiesel production each FY. Payments will be structured to encourage participation of producers with less than 65 million gallons annual production capacity. Producers with total annual production of: (a) less than 65 million gallons are reimbursed 1 feedstock unit for every 2.5 used for increased production; (b) 65 million gallons or more are reimbursed 1 feedstock unit for every 3.5 used for increased production. In addition, biodiesel producers are reimbursed for base production at 50 percent the rate of increased production. If the applications exceed the program's available funding, USDA will apply a factor to payments to hold program expenditures to available funding for the applicable FY.

A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.

Post assistance requirements...


Multiple FY Agreements require annual production estimate reports to be submitted during each applicable FY sign-up period. Such reports must comply with the terms of the Agreement and Bioenergy Program regulations. In all cases, the accounting for compliance will be made on a per FY basis.

Note: This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.


Participants under this program are subject to audit by the Office of the Regional Inspector General, U.S. Department of Agriculture.

Note: This section discusses audits required by the Federal agency. The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133. These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year, as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period, rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).


Bioenergy producers or any other individual or entity receiving payments for Bioenergy Program shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which payments were received.

Note: This section indicates the record retention requirements and the type of records the Federal agency may require. Not included are the normally imposed requirements of the General Accounting Office. For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C. For other programs, record retention is governed by the funding agency's requirements.



Title IX, Section 9010, Farm Security and Rural Investment Act of 2002 and Section 5(e) of the CCC Charter Act, 15 U.S.C. 714c.

Note: This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).

Regulations, Guidelines, And Literature

Program is announced through news media and is posted on Farm Service Agency website. Regulations published in Title IX, Section 9010, Farm Security and Rural Investment Act of 2002. Bioenergy Program fact sheet may be located online at

Contact information...

Web Sites
Regional Or Local Office


Note: This section lists the agency contact person, address and telephone number of the Federal Regional or Local Office(s) to be contacted for detailed information regarding a program such as: (1) current availability of funds and the likelihood of receiving assistance within a given period; (2) pre-application and application forms required; (3) whether a pre-application conference is recommended; (4) assistance available in preparation of applications; (5) whether funding decisions are made at the headquarters, regional or local level; (6) application renewal procedures (including continuations and supplementals) or appeal procedures for rejected applications; and (7) recently published program guidelines and material. However, for most federal programs, this section will instruct the reader to consult the so-called Appendix IV of the Catalog due to the large volume of Regional and Local Office Contacts for most agencies. This information is provided in Additional Contact Information (see below).

Headquarters Office

U.S. Department of Agriculture, Farm Service Agency, Kansas City Commodity Office, Contract Reconciliation Division, P.O. Box 419205, STOP 8758, Kansas City, MO 64141-6205. Telephone: 816-926-6525.

Note: This section lists names and addresses of the office at the headquarters level with direct operational responsibility for managing a program. A telephone number is provided in cases where a Regional or Local Office is not normally able to answer detailed inquiries concerning a program. Also listed are the name(s) and telephone number(s) of the information contact person(s) who can provide additional program information to applicants.

Additional Contact Information (Appendix IV)

Due to the large volume of regional and local office contacts for most agencies, full contact information is also provided separately here in a PDF format: