After a year of advocacy efforts by Growth Energy and our industry partners, U.S. Department of Agriculture (USDA) announced on December 8, 2021 that the agency is now making available $700 million in direct payments to biofuel producers adversely impacted by the health pandemic. These funds were authorized through the CARES Act which was signed into law late last year.

Our team has compiled important information you need to know when applying for this pandemic relief. For any additional questions not covered in the Q&A below, please contact John Fuher at [email protected].

Am I eligible for assistance?

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; or
  • An individual or legal entity that blends or otherwise combines biofuels into a blended biofuel. 

What will assistance payments look like?

Payments will be based on two criteria. The first set of qualifying gallons will be based on the production losses in 2020 when compared to 2019 production levels. The program will also allow gallons produced to meet contractual obligations in 2020 that had a gross profit loss (could not meet variable costs) to qualify for payments. For producers with multiple plants, payments will be based on all plants combined.

The payment rate itself will be based on total qualifying gallons divided by the $700 million in funding. The maximum benefit is capped at $50 million for any one producer. Lastly, only biofuels used in transportation fuels are eligible for assistance.

A recording of the USDA webinar which provided an overview of the program will be made available on the Biofuel Producer Program’s website under the Events tab.

What do I need to apply?

Visit https://www.rd.usda.gov/programs-services/energy-programs/biofuel-producer-program to download materials and determine if your business is eligible to receive assistance.

How do I submit an application? 

After you have reviewed the application guideclick here to download the application. Once completed, all applications must be emailed to [email protected]. 

When is the deadline to apply? 

The deadline to apply is 11:59pm EST on Friday, February 11, 2022.

Who do I call if I need help with my application?  

We urge you to call either Lisa Noty (712) 254-4366 or Jeff Carpenter (402) 437-5554 at USDA if you require assistance in applying for aid. You may also submit questions to USDA by email to [email protected].

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