The U.S. Department of Agriculture (USDA) recently made up to $800 million in economic relief available to biofuel producers in order to restore and improve renewable fuel markets affected by the COVID-19 pandemic.
The funding includes $700 million in monetary support to the biofuel industry and renewable fuel markets impacted by the coronavirus, a USDA press release said. The department will release the funds through the Biofuel Producer Program created by the Coronavirus Aid, Relief, and Economic Security Act.
“By making payments to biofuels producers, the program will help agricultural producers maintain and create more viable markets for products that supply biofuel production, such as corn, soybeans, or biomass,” the release said.
The payments will be calculated based on the market loss volume from 2019 to 2020, according to the release.
“Under the leadership of President Biden and Vice President Harris, USDA is providing direct relief to the people of rural America who are still reeling from the economic impacts of the pandemic.” USDA Secretary Tom Vilsack said in the release.
In addition to economic relief, the USDA will provide $100 million to promote the sales and use of higher blends of bioethanol and biodiesel, the release said. The focus is on bioethanol blends of E-15 and greater and fuel with biodiesel blends B-20 and greater.
Additional information on the program, as well as a request for public comment, can be found at www.epa.gov/newsroom.
