Agency: Environmental Protection Agency
Description:
Grants to industry and other activities to support investments in advanced biofuels. “Advanced biofuels” are defined as renewable fuels, other than ethanol derived from corn starch, that reduce lifecycle greenhouse gas emissions by at least 50%. This may include ethanol derived from cellulose, hemicellulose, or lignin; ethanol derived from sugar or starch; ethanol derived from waste material; biomass-based diesel; biogas; or butanol and other alcohols produced through the conversion of organic matter.
Bill Section:
60108(b)
US Code:
42 USC 7545(o)
New or Existing:
New
Potential Cost:
$10,000,000
Timeline:
FY22-31
Implementation Status/Rulemaking:
On February 22, 2024, EPA and DOE announced the availability of up to $9.4 million for the development of advanced biofuels from Section 60108(b) of the Inflation Reducation Act. EPA and DOE entered an Interagency Agreement to transfer the funds to DOE and allow DOE to manage the grant program. DOE will offer awards of up to $2 million each to “scale up key process steps [for biorefinery technologies] that are ready to move out of the laboratory scale (TRL 3 or 4) and into industrially relevant piece(s) of equipment” and awards of up to $9.4 million each to “demonstrate a pilot run of co-processing or processing a biointermediate such as biocrude to an advanced biofuel in particular sustainable aviation fuel.” Non-fuel bioproducts are not allowable as the primary product for an applicant’s proposed technology – only as coproducts: Source
TCS Notes:
Section 60108 also appropriates an additional $5 million to the EPA to develop tests and protocols under section 211(o) of the Clean Air Act.
According to the most recent funding announcement, eligible fuels must reduce greenhouse gas emissions by at least 50% compared to the petroleum fuels they replace. Applicants may calculate life cycle GHG emissions through the Argonne National Laboratory GREET (Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies) model or provide schemes developed through the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) methodology.
Duplicative of other funding for advanced biofuels, particularly federal programs in support of sustainable aviation fuels (SAFs) like the Fueling Aviation’s Sustainable Transition Grant Program: Sustainable Aviation Fuel (FAST-SAF) and Sustainable Aviation Fuel Credit.
Other TCS Resources:
Understanding U.S. Corn Ethanol and Other Corn-Based Biofuels Subsidies