81 FR 95956 - Notice of Funds Availability (NOFA); Farm-to-Fleet Feedstock Program Biofuel Production Incentive (BPI)
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation Federal Register Volume 81, Issue 250 (December 29, 2016)
Commodity Credit Corporation
Federal Register Volume 81, Issue 250 (December 29, 2016)
| Page Range | 95956-95958 | |
| FR Document | 2016-31582 |
[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)] [Notices] [Pages 95956-95958] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31582] ======================================================================== Notices Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section. ======================================================================== Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices [[Page 95956]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Commodity Credit Corporation Notice of Funds Availability (NOFA); Farm-to-Fleet Feedstock Program Biofuel Production Incentive (BPI) AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: In support and for the purposes of the Farm-to-Fleet Program, the U.S. Department of Agriculture (USDA) Commodity Credit Corporation (CCC) is announcing that funding is available to pay a BPI to companies that are refining biofuel in the United States from certain domestically grown feedstocks converted to drop-in biofuel. If eligibility requirements are met, subject to availability of funds, the USDA Farm Service Agency (FSA) will use CCC funds to pay a per gallon incentive amount for JP-5 and F-76 blended biofuels produced from eligible feedstocks and delivered to the U.S. Department of Navy (U.S. Navy). Up to $50 million of CCC funds is available for obligation through fiscal year (FY) 2018. USDA does not expect funding to be a constraint through FY 2018; however, should there be a demand in excess of $50 million, USDA would consider requesting additional funds be made available for BPI payments. As explained in this NOFA, the BPI payment rate will range between 8.335 to 25 cents per blended gallon of biofuel depending on the blended rate; the payment rate will not be based on which eligible feedstock is used to produce the biofuel. The total BPI payment will be determined by multiplying the payment rate by the number of gallons of qualifying biofuel blend delivered under a Defense Logistics Agency (DLA) Energy contract. Biofuel vendors that deliver blended biofuel under a DLA Energy contract on behalf of the U.S. Navy that was refined in the United States and was produced from a domestically grown eligible feedstock are referred to in this NOFA as ``claimants'' for the BPI payment. As further specified in the Background of this NOFA and subject to the availability of funds, FSA will make a BPI payment to the claimant upon receipt of the following information: Quantity of delivered biofuel blend, identification of the U.S. produced feedstock from which the biofuel was produced, and the blend rate. FOR FURTHER INFORMATION CONTACT: Kelly Novak, (202) 720-4053. ADDRESSES: As a claimant, submit your information to request a BPI Payment to Farm Service Agency, USDA, Attn: Kelly Novak, (202) 720- 4053; 1400 Independence Ave SW., Room 4765, Washington, DC 20250; or [email protected]. SUPPLEMENTARY INFORMATION: Background The joint USDA and U.S. Navy Farm-to-Fleet Program was announced in December 2013 and added the purchase of biofuel blends into Department of Defense (DOD) domestic solicitations for JP-5 and F-76 fuels. Funds from USDA's CCC are used for this effort to help increase the domestic consumption of agricultural commodities in the biofuel market. The CCC Charter Act (15 U.S.C. 714c(e)) authorizes CCC to use its general powers to increase the domestic consumption of agricultural commodities (other than tobacco) by expanding or aiding in the expansion of domestic markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities. CCC funding is available to pay a BPI for delivered blended biofuel that used certain feedstocks converted to drop-in biofuel. USDA is issuing this NOFA to improve transparency and simplify the process by which CCC funds are administered in support and for the purposes of expanding markets for bioenergy feedstocks through the increased use of eligible feedstocks to produce biofuel for the U.S. Navy. If eligibility requirements are met as specified below in the Eligibility Requirements section and subject to availability of funds, CCC will pay a per gallon incentive amount for JP-5 and F-76 blended biofuels produced from eligible feedstock. The BPI is administered by the Farm Service Agency (FSA); the FSA Administrator also serves as the Executive Vice-President of CCC. To date, the BPI has had limited use by claimants and minimal impact expanding or developing biofuel markets for agricultural commodities. As a result, through this NOFA, USDA is simplifying the use of CCC funds in the BPI. This simplification increases transparency by identifying a specific BPI payment rate. This allows claimants to quantify the BPI on a per gallon basis, thus making it easier for potential claimants to understand how the BPI funding process works when they consider submitting an offer to provide JP-5 and F-76 blended biofuels on DLA Energy domestic bulk fuel procurements. Those biofuel vendors that are awarded a contract by DLA Energy and deliver eligible blended F-76 or JP-5 biofuel, produced using an eligible feedstock, may submit a claim to receive a per gallon payment from FSA, subject to the availability of funds. As part of the pre- award acquisition process, DLA Energy will confirm the supplier's biofuel delivery capability, including quality review of the fuel specification (including feedstock type), ability to produce designated blended biofuel, and the specified blend rate. The BPI payment rate will be 8.335 cents per gallon of F-76 or JP-5 fuel that contains a minimum of 10 percent biofuel; the BPI payment rate will increase in a linear fashion; the amount of the increase is 0.8335 cents for every 1 percent biofuel content above 10 percent, up to a maximum BPI payment rate of 25 cents, per gallon. Table 1 shows examples of how the BPI payment rate will be determined based on the blended rate of the biofuel. The payment rate will not be based on which eligible feedstock is used to produce the biofuel. The total BPI payment will be determined by multiplying the BPI payment rate by the number of gallons of qualifying biofuel blend delivered under a DLA Energy contract. [[Page 95957]] Table 1--Example of BPI Determination Based on Blended Rate of Biofuel ------------------------------------------------------------------------ For every 1% biofuel content above 10%, the BPI payment rate will increase 0.8335 cents, up to a maximum payment rate of 25 cents, per gallon, as shown in the examples: ------------------------------------------------------------------------- Then the BPI If the blended rate is: payment rate, per gallon, will be: ------------------------------------------------------------------------ 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. ------------------------------------------------------------------------ Up to $50 million is presently available for obligation through FY 2018. USDA does not expect funding to be a constraint through FY 2018; however, should there be a demand in excess of $50 million, USDA would consider requesting additional funds be made available for BPI payments. BPI Payment Eligibility Requirements For a claimant to be eligible to receive a BPI payment with CCC funds through this NOFA, all three of the following requirements must be satisfied: 1. Delivery of a biofuel blend for use by the U.S. Navy that is contractually accepted by DLA Energy and produced in the United States from an eligible feedstock; 2. Use of a U.S. produced eligible feedstock or feedstocks to produce the biofuel used in the blended product (see Table 2--Qualified Feedstocks below for the list of eligible and ineligible feedstocks); and 3. Minimum of 10 percent blended biofuel to a maximum as permitted by the revision of MIL-DTL-16884 (F-76) or MIL-DTL-5624 (JP-5). Table 2--Qualified Feedstock or Feedstocks To Produce the Biofuel Used in the Blended Product ------------------------------------------------------------------------ Eligible Non-eligible ------------------------------------------------------------------------ Agricultural residues such as rice Food waste. hulls, nut shells. Algae or Algal oil................. Municipal solid waste. Animal waste and by-products of Yard waste. animal waste including fats, oils greases (not recycled). Annual cover crops or oil produced from these cover crops *. Camelina or camelina oil........... Canola or Rapeseed oil............. Cellulosic Biomass from crop residues (that is, stover, wheat straw, rice straw, etc.). Energy cane........................ Eucalyptus......................... Hybrid Poplars..................... Jatropha........................... Mill residues or waste............. Miscanthus......................... Non-food grade corn oil............ Pennycress......................... Shrub willows...................... Slash, pre-commercial thinnings, and tree residue, forest residues. Sorghum or sorghum oil (non-food grade). Sorghum, Biomass................... Sorghum, Energy.................... Sunflower oil...................... Switchgrass........................ Other agricultural product approved by CCC. ------------------------------------------------------------------------ * Note: Cover crops must be approved by the FSA Administrator on a case- by-case basis. Generally, however, ``cover crop'' means crops, including grasses, legumes, and forbs, for seasonal cover and other conservation purposes. Cover crops are primarily used for erosion control, soil health improvement, and water quality improvement. The cover crop may be terminated by natural causes, such as frost, or intentionally terminated through chemical application, crimping, rolling, tillage, or cutting. BPI Payment Claim Submission Requirements It is the claimant's responsibility to invoice DLA-Energy for the blended biofuel delivered under the contract to the U.S. Navy and to submit necessary documentation to FSA to receive a BPI payment. Claimant will submit documentation indicating amount of blended biofuel delivered to the U.S. Navy, the blend rate of that biofuel delivery, and the feedstock used to produce the biofuel blend, such as a signed DLA Energy Receiving Report with applicable attachments or other equivalent documentation. The claimant will provide the Energy Receiving Report or equivalent document with the information listed below to USDA for the CCC funded BPI payment. All of the following items will be included in the information provided by the claimant to USDA: 1. The amount of the delivered blended biofuel, as the affirmed blended quantity of delivered blended biofuel, the delivery date, and the name and address of the claimant; 2. The U.S. produced feedstock from which the biofuel was produced; and 3. The blended rate. [[Page 95958]] Distribution of Funds Following receipt and review of the complete documentation submitted to USDA by the claimant, as described above in the BPI Payment Claim Submission Requirements section, and satisfaction of the requirements specified above in the BPI Payment Eligibility Requirements section, FSA will make payments directly to claimants of the BPI for qualified biofuel, subject to the availability of funds. In the event the claimant delivers fuel that is produced from an ineligible feedstock, or otherwise fails to comply with any eligibility requirement, the claimant will not receive a payment. The claimant will receive the earned total BPI payment from FSA following FSA's receipt of the information, as specified above. Paperwork Reduction Act Requirements In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. chapter 35), FSA is not required to submit the information collection request to OMB for approval because the information is expected to come from less than 10 biofuel companies, which does not meet the 10 or more entities requirement, and therefore, the PRA requirements do not apply. Catalog of Federal Domestic Assistance The BPI payment is not required to be in the Catalog of Federal Domestic Assistance. Environmental Review The environmental impacts of this NOFA have been considered in a manner consistent with the provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations for compliance with NEPA (7 CFR part 799). As previously stated, this program uses CCC funds in coordination with DLA Energy purchases. This NOFA initiates a relatively minor change in the application of the CCC funds; the general scope of the BPI modification for DLA Energy bulk fuel solicitations, as implemented previously, is unchanged. The purpose of the BPI is to provide an incentive to fuel providers for biofuel that is produced from a domestic feedstock approved by CCC. FSA's participation in the program and the minor, discretionary change to the program (that is, simplifying the program by providing a per gallon incentive that varies per blend) are administrative in nature. The discretionary aspects of the program (for example, solicitation acceptance and certification of delivery, etc.) were designed and are implemented by DLA Energy and are not proposed to be substantively changed. As such, the Categorical Exclusions in 7 CFR part 799.31 apply, specifically 7 CFR 799.31(b)(6)(c) (that is, financial assistance to supplement income). No Extraordinary Circumstances (7 CFR 799.33) exist. As such, FSA has determined that this NOFA does not constitute a major Federal action that would significantly affect the quality of the human environment, individually or cumulatively. Therefore, FSA will not prepare an environmental assessment or environmental impact statement for this action. Val Dolcini, Executive Vice President, Commodity Credit Corporation. [FR Doc. 2016-31582 Filed 12-28-16; 8:45 am] BILLING CODE 3410-05-P
![95958 Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices
Distribution of Funds example, solicitation acceptance and INFORMATION. All comments, including
Following receipt and review of the certification of delivery, etc.) were names and addresses when provided,
complete documentation submitted to designed and are implemented by DLA are placed in the record and are
USDA by the claimant, as described Energy and are not proposed to be available for public inspection and
above in the BPI Payment Claim substantively changed. As such, the copying. The public may inspect
Submission Requirements section, and Categorical Exclusions in 7 CFR part comments received at the Sitka Ranger
satisfaction of the requirements 799.31 apply, specifically 7 CFR District, 2108 Halibut Point Road, Sitka
specified above in the BPI Payment 799.31(b)(6)(c) (that is, financial Alaska. Please call ahead to facilitate
Eligibility Requirements section, FSA assistance to supplement income). No entry into the building.
will make payments directly to Extraordinary Circumstances (7 CFR
claimants of the BPI for qualified 799.33) exist. As such, FSA has FOR FURTHER INFORMATION CONTACT: Lisa
biofuel, subject to the availability of determined that this NOFA does not Hirsch, RAC Coordinator by phone at
funds. In the event the claimant delivers constitute a major Federal action that 907–747–4214 or via email at
fuel that is produced from an ineligible would significantly affect the quality of lisahirsch@fs.fed.us.
feedstock, or otherwise fails to comply the human environment, individually or Individuals who use
with any eligibility requirement, the cumulatively. Therefore, FSA will not telecommunication devices for the deaf
claimant will not receive a payment. prepare an environmental assessment or (TDD) may call the Federal Information
The claimant will receive the earned environmental impact statement for this Relay Service (FIRS) at 1–800–877–8339
total BPI payment from FSA following action. between 8:00 a.m. and 8:00 p.m.,
FSA’s receipt of the information, as Val Dolcini, Eastern Standard Time, Monday
specified above.
Executive Vice President, Commodity Credit through Friday. Please make requests in
Paperwork Reduction Act Requirements Corporation. advance for sign language interpreting,
In accordance with the Paperwork [FR Doc. 2016–31582 Filed 12–28–16; 8:45 am] assistive listening devices or other
Reduction Act (PRA) of 1995 (44 U.S.C. BILLING CODE 3410–05–P reasonable accomodation for access to
chapter 35), FSA is not required to the facility or procedings by contacting
submit the information collection the person listed FOR FURTHER
request to OMB for approval because the DEPARTMENT OF AGRICULTURE INFORMATION.
information is expected to come from
Forest Service SUPPLEMENTARY INFORMATION:
less than 10 biofuel companies, which
does not meet the 10 or more entities Additional RAC information, including
Sitka/Tenakee Springs/Port Alexander the meeting agenda and the meeting
requirement, and therefore, the PRA Resource Advisory Committee
requirements do not apply. summary/minutes can be found at the
AGENCY: Forest Service, USDA. following Web site: https://
Catalog of Federal Domestic Assistance fsplaces.fs.fed.us/fsfiles/unit/wo/
ACTION: Notice of meeting.
The BPI payment is not required to be secure_rural_schools.nsf/RAC/
in the Catalog of Federal Domestic SUMMARY: The Sitka/Tenakee Springs/ 07924D017A51AEC588257544
Assistance. Port Alexander Resource Advisory 0062EFB1?OpenDocument. The agenda
Environmental Review Committee (RAC) will meet in Sitka, will include time for people to make
Alaska. The committee is authorized oral statements of three minutes or less.
The environmental impacts of this under the Secure Rural Schools and
NOFA have been considered in a Individuals wishing to make an oral
Community Self-Determination Act statement should request in writing by
manner consistent with the provisions (Pub. L. 110–343) (the Act) and operates
of the National Environmental Policy Febuary 9, 2017, to be scheduled on the
in compliance with the Federal agenda. Anyone who would like to
Act (NEPA, 42 U.S.C. 4321–4347), the Advisory Committee Act. The purpose
regulations of the Council on bring related matters to the attention of
of the committee is to improve
Environmental Quality (40 CFR parts the committee may file written
collaborative relationships and to
1500–1508), and the FSA regulations for statements with the committee staff
provide advice and recommendations to
compliance with NEPA (7 CFR part the Forest Service concerning projects before or after the meeting. Written
799). As previously stated, this program and funding consistent with the title II comments and requests for time for oral
uses CCC funds in coordination with of the Act. The meeting is open to the comments must be sent to Lisa Hirsch,
DLA Energy purchases. This NOFA public. The purpose of the meeting is to RAC Coordinator, 2108 Halibut Point
initiates a relatively minor change in the provide training to the public regarding Road, Sitka, Alaska 99835 or by email
application of the CCC funds; the Title II of the Secure Rural Act and the to lisahirsch@fs.fed.us, or via facsimile
general scope of the BPI modification process for new project proposals to 907–747–4253.
for DLA Energy bulk fuel solicitations,
DATES: The meeting will be held on Meeting Accommodations: If you are
as implemented previously, is
Febuary 16, 2017, from 5 p.m. to 7 p.m. a person requiring reasonable
unchanged.
The purpose of the BPI is to provide All RAC meetings are subject to accommodation, please make requests
an incentive to fuel providers for biofuel cancellation. For status of meeting prior in advance for sign language
that is produced from a domestic to attendance, please contact the person interpreting, assistive listening devices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
feedstock approved by CCC. FSA’s listed under FOR FURTHER INFORMATION or other reasonable accommodation for
CONTACT. access to the facility or proceedings by
participation in the program and the
minor, discretionary change to the ADDRESSES: The meeting will be held at contacting the person listed in the
program (that is, simplifying the the Sitka Ranger District, 2108 Halibut section titled FOR FURTHER INFORMATION
program by providing a per gallon Point Road, Sitka Alaska, Katlian CONTACT. All reasonable
incentive that varies per blend) are Conference Room. accommodation requests are managed
administrative in nature. The Written comments may be submitted on a case by case basis.
discretionary aspects of the program (for as described under SUPPLEMENTARY
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Document Created: 2016-12-29 01:59:11
Document Modified: 2016-12-29 01:59:11
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Contact | Kelly Novak, (202) 720-4053. | |
| FR Citation | 81 FR 95956 |
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