Biofuel Producer Program (RD-BFP)

This program authorizes the Secretary of Agriculture to make payments to U.S.-based producers of advanced, cellulosic, or conventional biofuel, biomass-based diesel, or renewable fuel to offset unexpected market losses as a result of the COVID-19 pandemic. 

Biofuel producers eligible to apply include those whose U.S.-based facilities directly produce an eligible biofuel.

Eligible biofuel is renewable fuel produced from renewable biomass and is used to replace or reduce the quantity of fossil fuel in a transportation fuel, comprised of advanced biofuel, biomass-based diesel, cellulosic biofuel, or conventional biofuel, as such terms are defined in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) and produced in the United States. 

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

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

Payment to eligible biofuel producers is based on the volume of market loss the producer experienced during calendar year 2020. The market loss is calculated by comparing the gallons of eligible biofuel produced during calendar year 2019 to the gallons of eligible biofuel produced in calendar year 2020. Quantities of gaseous biofuel are converted into gallons based on the British Thermal Unit (BTU) equivalent of one gallon of biodiesel using Energy Information Administration factors.

• Application Guide