Renewable Fuel Reimbursement Program Included In HEROES Act
On May 12, 2020, a bill was introduced in the U.S. House of Representatives, which would make emergency supplemental appropriations for the fiscal year ending on September 30, 2020. Titled the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act), this bill addresses various issues, many of which have been worsened by the COVID-19 pandemic. Some of these issues include provisions of revenue, health, retirement, government operations, and support for processed commodities, among others.
Of particular interest to the biofuels industry is the bill’s introduction of a Renewable Fuel Reimbursement Program, which would make payments to eligible entities that experienced market losses due to the pandemic between January 1, 2020, and May 1, 2020. Eligible entities will consist of any facility that produced renewable fuel or advanced biofuel in calendar year 2019. The amount of payment to an eligible entity will be the sum of $0.45 multiplied by the number of gallons of qualified fuel produced in that period. Should a determination be made that an entity was unable to produce qualified fuel for one or more months during the applicable period due to the pandemic, $0.45 multiplied by 50 percent of the number of gallons produced in the corresponding month in 2019 will be paid.