Download PDF
January 6, 2017

USDA Issues A Notice of Available Funds For The Farm-To-Fleet Biofuel Production Incentive

Kathleen M Roberts

On December 29, 2016, the U.S. Department of Agriculture (USDA) Commodity Credit Corporation (CCC) published in the Federal Register a notice of available funds regarding the Biofuel Production Incentive (BPI) for companies refining biofuel from certain domestically grown feedstocks. The notice aims to improve transparency and simplify the process of administering CCC funds to support the Farm-to-Fleet program by identifying a specific BPI payment rate. The Farm Service Agency (FSA), which administers CCC funds, will determine the per gallon incentive amount by multiplying the number of gallons of qualifying biofuel blend delivered to the U.S. Department of Navy by the appropriate payment rate based on the table below. The type of feedstock used does not affect the payment rate, as it is solely based on the blend rate of the biofuel. There is currently $50 million in funding available through 2018 to support the BPI payments. Biofuel vendors with a Defense Logistics Agency (DLA) Energy contract that deliver eligible blended F–76 or JP–5 biofuel and meet the eligibility requirements can submit a claim to receive a BPI payment. 

Blend rate BPI payment rate per gallon
10% 8.3350 cents
11% 9.1685 cents
15% 12.5025 cents
20% 16.6700 cents
25% 20.8375 cents
30% and up to a maximum as permitted by the MILSPEC 25.0000 cents