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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


On December 11, 2013, the U.S. Departments of Agriculture (USDA) and Navy announced that as part of their joint "Farm-to-Fleet" initiative, the acquisition of biofuel blends will be included into regular Department of Defense domestic solicitations for jet engine and marine diesel fuels. The Navy will seek to purchase JP-5 and F-76 advanced drop-in biofuels blended from 10 to 50 percent with conventional fuels. Funds from USDA's Commodity Credit Corporation will assist the effort.

The Navy and USDA plan to hold an "Industry Day" to explain the effort on January 30, 2014. A copy of the USDA press release on the announcement is available online.

In 2011, DOE, USDA, and the Navy announced a joint $510 million effort to help promote the commercialization of domestic advanced drop-in biofuels for military and commercial use. The Navy and DOE have been challenged with securing their portion of the funding through the appropriations process. Several in Congress have criticized the cost of the biofuels compared to traditional sources of energy. Under the initiative announced this week, the Navy will expect that drop-in biofuels will be available for less than $4 per gallon by 2016, making them competitive with traditional sources of fuel.