The Renewable Fuels Development Program provides grants for the construction of new biofuels production facilities with a capacity of at least 30 million gallons per year and/or the expansion of existing biofuel production facilities by at least 30 million gallons per year.  The maximum grant award under this program is $5.5 million per facility. 

Additionally, DCEO provides grants up to $25,000 through its Biofuels Business Planning Grant Program for the development of business plans, engineering designs, permit applications, and/or legal work for potential new biofuel production facilities.

The RFDP is designed to:

• increase the production of ethanol and biodiesel fuels in Illinois
• expand the market and demand for Illinois agricultural products
• create new construction and permanent jobs in Illinois
• expand rural economic development in Illinois
• reduce the nation's dependence on foreign oil
• improve air quality through the reduction of harmful vehicular exhaust emissions

Program details:

• The minimum eligible facility size is 30 million gallons per year.
• A Project Labor Agreement is required to be eligible to receive a grant award.
• Maximum RFDP grant award is $5.5 million
• Total grant award cannot exceed 10% of the total construction costs of the facility or $0.10 per gallon of additional biofuels production capacity, whichever is greater.

For example, In 2004, $4.7 million was awarded to Lincolnland Agri-Energy for the construction of a 45 million gallon per year ethanol facility in Robinson, Illinois.

For more information on the RFDP, please contact:

Norm Marek
217/785-5082
Norm.Marek@illinois.gov

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