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Combined Heat and Power Partnership

Repowering Assistance Program

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated1/30/2013
Incentive TypeGrant
Incentive Administrator/Contact OfficeUSDA - Rural Development
Incentive Initiation Date3/14/2011
Incentive Size and Funding SourceThe Repowering Assistance Program provides payments to biorefineries that install new systems that use renewable biomass to produce heat and power for plant operations and replace the use of fossil fuels. It provides reimbursement payments to help offset the costs associated with converting existing fossil fuel systems to renewable biomass fuel systems. The program encourages the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of eligible biorefineries.

The amount of assistance is determined by the availability of funds, the project scope and the ability of the proposed project to meet all the scoring criteria. In particular, the percentage reduction in fossil fuel used by the biorefinery, the quantity of fossil fuels replaced by a renewable biomass system, and the cost effectiveness of the renewable biomass system. Payments are made for eligible post-application costs incurred during the construction phase of the repowering project. Assistance can be awarded in amounts up to 50% of the total project costs as long as it does not exceed the maximum award for the fiscal year.

The program will provide reimbursement payments (not more frequently than once per month) for eligible project costs of the renewable biomass system during the construction phase of the repowering project. Up to 90% of the funds can be used during project construction, with the remaining 10% made upon demonstration of successful completion of the project.
Eligible RecipientTo be eligible, an applicant must produce and sell an advanced biofuel. An Advanced Biofuel Producer is an individual, corporation, company, foundation, association, labor organization, firm, partnership, society, joint stock company, group of organizations or non-profit entity that produces and sells an advanced biofuel. Eligible biorefineries are those that were in existence prior to June 18, 2008.
Eligible FuelBiomass; Biogas
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaA variety of technologies can be used to convert renewable biomass into heat or power. Technologies may include, but are not limited to, anaerobic digesters, processed steam, biomass boilers or CHP.

Advanced biofuel is a fuel derived from renewable biomass, other than corn kernel starch, including:
  • Biofuel derived from cellulose, hemicellulose or lignin.
  • Biofuel derived from sugar and starch (other than corn kernel starch derived Ethanol).
  • Biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste, food waste and yard waste.
  • Diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat.
  • Biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass.
  • Butanol or other alcohols produced through the conversion of organic matter from renewable biomass.
  • Other fuel derived from cellulosic biomass.
Application Form(s)Application Form (PDF) (5 pp, 163K)
Other Incentive DetailsThe control and availability of biomass is crucial to a project's viability. The feedstock used for the production of biogas and electricity can be created internally or purchased from external sources. Applicants must demonstrate, at the time of application, that the proposed site has direct access to biomass or third party commitments to supply biomass for the repowering project for at least 3 years.
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