Biofuel Producer Program Applications Open DEADLIINE: February 11, 2022

December 14, 2021

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(U.S. Department of Agriculture) This program authorizes the Secretary of Agriculture to make payments to U.S.-based producers of advanced, cellulosic, or conventional biofuel, biomass-based diesel, or renewable fuel to offset unexpected market losses as a result of the COVID-19 pandemic.

NOTE: For the purposes of this program, eligible biofuel is defined as “renewable fuel produced in the U.S. from renewable biomass and used to replace or reduce the amount of fossil fuel in transportation fuels,” as defined in Section 211(o)(1) of the Clean Air Act.

Payment to eligible biofuel producers is based on the volume of market loss the producer experienced during calendar year 2020. The market loss is calculated by comparing the gallons of eligible biofuel produced during calendar year 2019 to the gallons of eligible biofuel produced in calendar year 2020. Quantities of gaseous biofuel are converted into gallons based on the British Thermal Unit (BTU) equivalent of one gallon of biodiesel using Energy Information Administration factors.

Who may apply?

Biofuel producers eligible to apply include those whose U.S.-based facilities directly produce an eligible biofuel.

You are not considered an eligible producer if you are:

A sole proprietor or legal entity that exclusively contracts for the production of biofuel by third-party producers under a toll or bailment arrangement, or third-party production contract
An individual or legal entity that blends or otherwise combines biofuels into a blended biofuel

What funding is available?

Up to $700 million in payments to eligible biofuel producers is available.

What are the terms?

Payments to eligible, selected biofuels producers will occur once the application cycle closes. USDA Rural Development anticipates making one payment each to selected applicants under the current notice of funding.

How do we get started?

Submit application and accompanying documents electronically to EnergyPrograms@usda.gov by 11:59 p.m. Eastern Time on [Insert Due Date]. Click the “To Apply” tab for instructions.

Who can answer questions?

Email: EnergyPrograms@usda.gov

Phone: Lisa Noty (712) 254-4366
Jeff Carpenter (402) 437-5554

If you would like to access alternate (visual or auditory) means of communication, contact the USD Target Center at (202) 720-2600 (voice).

What governs this program?

This program is governed by Title I, Division B of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; Public Law 116 – 136)

Notice of Funding Opportunity, 12/13/12 READ MORE

United States Department of Agriculture (USDA) Under Secretary for Rural Development Xochitl Torres Small today announced that USDA is inviting applications under the Biofuel Producer Program authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Through the Biofuel Producer Program, USDA is making up to $700 million in direct payments available for biofuel producers who faced unexpected market losses due to the pandemic.

The payments will help agricultural producers maintain and create more viable markets for products that supply biofuel production, such as corn, soybean or biomass. Payments will be based on the producer’s market loss volume in 2020, which is calculated by the amount of fuel produced in 2020 in comparison to 2019.

The Biden-Harris Administration is committed to further growth of the biofuels industry, and the historic Build Back Better Act commits additional funding that will provide better market access for farmers and more affordable and cleaner fuels for consumers.
Electronic applications must be submitted to EnergyPrograms@usda.gov by 11:59 p.m. EDT on Feb. 11, 2022. To download application materials and review eligibility requirements, visit https://www.rd.usda.gov/programs-services/energy-programs/biofuel-producer-program. For more information, see page 70818 of the Dec. 13, 2021, Federal Register.

The Department is hosting an informational webinar on Friday, Dec. 17 at 1 p.m. Eastern Time for potential applicants and interested stakeholders. Pre-registration is required. To register, visit https://attendee.gotowebinar.com/register/2064275226634456588.

USDA Offers Funds For Economic Relief to Biofuel Producers, Restore Renewable Fuel Markets Hit by Pandemic (Sidney Sun-Telegraph)

Applications for $700M in COVID relief for biofuels due Feb. 11 (Ethanol Producer Magazine)

Economic relief available for biofuel producers and to restore renewable fuel markets hit by the pandemic (Havre Daily News)