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  • USDA

USDA announces $700M for biofuel producers as economic relief, $100M in infrastructure grants

USDA Secretary Tom Vilsack announced Dec. 7 that USDA will make up to $800 million available to support biofuel producers and infrastructure.

The announcement includes $700 million to provide economic relief to biofuel producers and restore renewable fuel markets affected by the pandemic. The department will make the funds available through the new Biofuel Producer Program authorized by the CARES Act. USDA will make up to $700 million in direct payments available for biofuel producers who faced unexpected market losses due to the pandemic. 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. USDA will announce the official application window for this program within the coming week.

Additionally, in the coming months, USDA will make $100 million available to increase significantly the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The funding will provide grants to refueling and distribution facilities for cost of installation, retrofitting or otherwise upgrading of infrastructure required at a location to ensure the environmentally safe availability of fuel containing bioethanol blends of E15 and greater or fuel containing biodiesel blends B20 and greater. USDA will announce the official application window for grants within the coming months.



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