Over the weekend USDA published the pandemic relief NOFA (Notice of Funding Availability) for $700 million for eligible ethanol and renewable fuel producers in the Federal Register. Biofuel Producers will have until Midnight EST on February 11th to complete the application process. Because these funds are quite limited, it may be beneficial to apply as quickly as possible, you can always utilize our team which has knowledge of and experience with USDA programs.
Every plant may have a unique situation, and industry conditions from early 2020 will impact the calculation, but we are here to help you and your team answer any questions you might have.
This is a new program, and USDA has not provided specifics regarding certain details at this point. Christianson will liaison with USDA in order to ascertain key items with regards to your specific situation.
Here is what we do know so far:
- Applications are due February 11 by Midnight Eastern Time
- In regards to the award calculation:
- “Payment to a biofuel producer will be based upon the volume of market loss the biofuel producer experienced in the calendar year 2020. The producer’s volume of market loss will be calculated by comparing the amount of fuel (gallons of eligible biofuel) they produced in the calendar year 2020 to the amount of fuel (gallons of eligible biofuel) produced in the calendar year 2019. Eligible biofuel (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.”
- ONLY transportation fuel gallons are eligible
- “Payment to a biofuel producer will be based upon the volume of market loss the biofuel producer experienced in the calendar year 2020. The producer’s volume of market loss will be calculated by comparing the amount of fuel (gallons of eligible biofuel) they produced in the calendar year 2020 to the amount of fuel (gallons of eligible biofuel) produced in the calendar year 2019. Eligible biofuel (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.”
- How much will the payment be?
- “The payments will be based on a fixed amount per gallon for all eligible producers.” USDA will calculate this amount after receiving all applications and assessing for eligibility.
- Link to Federal Register: https://www.govinfo.gov/content/pkg/FR-2021-12-13/pdf/2021-26876.pdf
- To see the Biofuels Producer Program announcement, click here
- Online Portal: https://www.rd.usda.gov/programs-services/energy-programs/biofuel-producer-relief-payments-program
As a reminder, applicants who are not registered with DUNS and SAM, it can take over one month to complete these requirements. It is suggested that the process be started as soon as possible.
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DUNS – Applicants must obtain a DUNS number (including the plus 4 extension, if applicable) from Dun and Bradstreet (D&B). DUNS website: http://fedgov.dnb.com/webform.
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SAM – Applicants must register with SAM at http://www.sam.gov/ prior to submitting an application in response to this FOA. Also, your existing SAM registration must be updated annually.
We are watching for any additional information released from USDA and will alert you as soon as possible once updates are released.
To see the full stakeholder announcement from the USDA click here.
