Photo: U.S. Navy, Sarah E. Burford
February 5, 2018
BY Erin Voegele
The USDA Commodity Credit Corp. has withdrawn support for the Farm-to-Fleet biofuel production incentive (BPI), effective Feb 1. BPI payments, however, will continue to be made under existing commitments.
The CCC published a notice in the Federal Register Feb. 1 announcing the decision, which is effective immediately. The notice explains that the USDA has reassessed how to best use limited available funds and has determined that the BPI is no longer a priority for CCC funding. According to the notice, the impact of the action is that supplies of fuel containing a biofuel blend to the Navy are no longer eligible to receive CCC incentive payments through the Farm-to-Fleet BPI program.
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The CCC indicated that a notice of funds available for the Farm-to-Fleet Feedstock BPI was released in December 2016. The payments were intended to support the Farm-to-Fleet Program, launched by the USDA and Navy in 2013. The program was designed to provide incentive funds to companies that are refining biofuel in the U.S. from certain domestically grown feedstocks converted to drop-in biofuel for delivery to supply biofuels to the Navy.
CCC funds, administered by the Farm Service Agency, were used for BPI payments. Up to $50 million in CCC funds was previously announced as being available through fiscal year (FY) 2018. The notice published on Feb. 1 withdraws the availability of BPI payments for deliveries not yet solicited or procured by the Navy and Defense Logistics Agency Energy office. It also cancels USDA support for biofuels blends solicited by the DLA Energy office and Navy.
The CCC said the FSA will continue to make BPI payments required under existing commitments. In addition, BPI payments will be made from any awards on solicitations issued prior to Feb. 1, but not those published after the withdrawal was published.
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Reps. Mike Carey, R-Ohio, and Mariannette Miller-Meeks, R-Iowa, on May 1 introduced legislation that aims to retroactively extend the biodiesel blenders tax credit (BTC) and the second-generation biofuel producer tax credit.
A broad coalition representing more than 350 trucking fleets, shippers, and supporters of freight movement is urging Congress to extend the biodiesel blenders’ tax credit to lower supply chain costs and protect consumers from inflationary pressures.
Repsol and Bunge on April 25 announced plans to incorporate the use of camelina and safflower feedstocks in the production of renewable fuels, including renewable diesel and sustainable aviation fuel (SAF).
Germany-based Mabanaft on April 17 announced it started to supply SAF to airlines at Frankfurt Airport in January. The company said it will deliver more than 1,000 metric tons of SAF to the airport this year under the European SAF mandate.
U.S. operable biofuel capacity in February was unchanged from the previous month, according to data released by the U.S. EIA on April 30. Feedstock consumption for February was down when compared to both January 2025 and February 2024.