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The bioenergy program is a federal initiative that was established by the U.S. Department of Agriculture (USDA) in 2002. The program helped to make payments to ethanol and biodiesel producers who expand their production capacity from eligible commodities. The program also helps in making payments to offset the additional cost in commodity feedstock that is required for expansion.
According to 7 CFR 1424.4, following are the eligibility requirements of a producer under the bioenergy program:
1.A producer must use eligible commodities in bioenergy production;
2. A producer must maintain records indicating:
a. the quantity of bioenergy produced from an eligible commodity by location; and
b. the quantity of eligible commodity used by a location to produce bioenergy.