U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that the Department has provided $700 million to help lower costs and support biofuel producers who faced unexpected market losses due to the COVID-19 pandemic. The funds are being made available through the Biofuel Producer Program, which was created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The investments include more than $486 million for 62 projects for producers located in socially vulnerable communities.
“The Biden-Harris Administration is committed to rebuilding the rural economy after the impacts of the pandemic,” Vilsack said. “That’s why USDA is targeting resources and investments to improve the strength and resiliency of America’s sustainable fuel markets. The investments we’re announcing today will pave the way to economic recovery for America’s biofuel producers, stimulate a critical market for U.S. farmers and ranchers, and support our nation’s transition to a clean-energy economy.”
USDA Rural Development State Director for Colorado Armando Valdez added, “It is exciting to have this resource investment of USDA in Colorado-based businesses. These investments announced today demonstrate how USDA is focusing on helping support energy development, reduce climate pollution, and increase resilience to the impacts of climate change through economic support to Colorado’s rural communities.”
USDA is making payments to 195 biofuel production facilities to support the maintenance and viability of a significant market for agricultural producers of products such as corn, soybean or biomass that supply biofuel production. These biofuel producers experienced unexpected market losses on a combined 3.7 billion gallons as a result of COVID–19.
For example, in Colorado the following five projects were funded by USDA Rural Development
- Crimson Renewable Energy Holdings LLC received payments to help biofuel producers recover from unexpected market losses suffered as a result of COVID-19. Crimson Renewable Energy Holdings LLC has their corporate office based in Denver and is receiving financial assistance for two facilities that produces biomass-based diesel in California and Oregon.
- Front Range Energy LLC, in Windsor, received payments to help biofuel producers is over from unexpected market losses suffered as a result of COVID-19 for one facility that produces ethanol.
- Gevo Incorporated received payments to help biofuel producers recover from unexpected market losses suffered as a result of COVID-19. Gevo Incorporated, based out of Englewood, is receiving financial assistance for one facility that produces ethanol in Minnesota.
- Sterling Ethanol LLC received payments to help biofuel producers recover from unexpected market losses suffered as a result of COVID-19. Sterling Ethanol LLC is receiving financial assistance for one facility that produces ethanol.
- Yuma Ethanol LLC, received payments to help biofuel producers recover from unexpected market losses suffered as a result of COVID-19 for one facility that produces ethanol.
Under the Biden-Harris Administration, USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, tribal, and high-poverty areas.
For more information in Colorado, visit www.rd.usda.gov/co.