Applications for $700M in COVID relief for biofuels due Feb. 11
December 21, 2021
BY Erin Krueger
Biofuel producers who experienced market losses in 2020 as a result of the COVID-19 pandemic will have until Feb. 11 to file an application with the USDA seeking a portion of the $700 million in relief funds to be awarded under the Biofuel Producer Program.
The USDA Rural Business-Cooperative Service on Dec. 13 published a notice in the Federal Register announcing the application window and application requirements for the $700 million in COVID-19 relief funds announced by the agency earlier in the month.
Advertisement
The Biofuel Producer Program will may payments to eligible producers of eligible biofuel for unexpected market losses as a result of COVID-19. The USDA said the payments to biofuel producers will support the maintenance and viability of a significant market for agricultural producers of products, such as corn, soybeans or biomass, that supply biofuel production. Payments awarded to biofuel producers under the program will be based upon the volume of market loss the biofuel producer experienced in calendar year 2020. According to the notice, a producer’s volume of market loss will be calculated by comparing the amount of fuel they produced in calendar year 2020 to the amount of fuel produced in 2019. Eligible gallons of biofuel produced by the eligible producer in 2020 to meet required contractual commitments resulting in a gross profit loss will be deducted from 2020 production by the agency’s calculation of program payments, the USDA said in the notice. Quantities of gaseous biofuel will be converted into gallons based on the British thermal unit equivalent of 1 gallon biodiesel using factors published by the U.S. Energy Information Administration.
The notice explains that the payments will be based on a fixed amount per gallon for all eligible producers. That fixed amount per gallon will be calculated by diving the amount of program funding available by the total volume of market loss reported by eligible program applicants.
Advertisement
Applications for the Biofuel Producer Program must be filed by Feb. 11, 2022. A full copy of the notice is available on the Federal Register website.
Related Stories
U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.
XCF Global Inc. on July 8 provided a production update on its flagship New Rise Reno facility, underscoring that the plant has successfully produced SAF, renewable diesel, and renewable naphtha during its initial ramp-up.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.
The USDA’s Risk Management Agency is implementing multiple changes to the Camelina pilot insurance program for the 2026 and succeeding crop years. The changes will expand coverage options and provide greater flexibility for producers.
EcoCeres Inc. has signed a multi-year agreement to supply British Airways with sustainable aviation fuel (SAF). The fuel will be produced from 100% waste-based biomass feedstock, such as used cooking oil (UCO).
Upcoming Events
