The Bioenergy Program for Advanced Biofuels (BPAB) is intended to pay advanced biofuel 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 and woody biomass. Electricity from biogas is also eligible. 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 obtaining 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. A 1999 Executive Order established the program and the U.S. Department of Agriculture’s (USDA) Rural Development office administers it.
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