Renewable Fuel Retail Recovery Program Update

The December 30 deadline for the purchase of eligible equipment under Iowa’s Renewable Fuel Retail Recovery Program (RFRRP) is imminent. Iowa’s RFRRP program was created under the guidance of the Iowa Department of Agriculture and Land Stewardship (IDALS) using federal CARES Act money allocated to the state. In total, the RFRRP program made $7 million dollars in CARES Act money available to fuel retailers for investment into infrastructure necessary for the sale of high blend biofuels.

Under guidance issued by the United States Treasury, CARES Act money allocated to states must be spent on eligible expenditures by December 30, 2020 or be returned to the federal government. In the instance where CARES Act money allocated to a state is re-allocated to a sub-recipient as done under the RFRRP, the sub-recipient of CARES Act money using the funds to purchase goods and equipment must satisfy the elements of performance and delivery prior to December 30. Fortunately, Treasury guidance accounts for supply chain disruptions caused by the Covid-19 pandemic and the delivery element may be waived if vendors are experiencing delays in meeting demand. Because fuel equipment vendors are experiencing supply chain disruption due to Covid-19, RFRRP funding recipients are only required to show documentation proving proof of purchase for eligible equipment prior to December 30, 2020.

In the late evening of December 21, Congress passed another long-awaited Covid Relief Package. The $900 billion dollar relief package stopped short of providing another round of direct aid for states or allowing states to use aid already received to backfill state budget shortfalls. However, the package passed by Congress does extend the December 30th deadline for a state’s use of CARES Act funding. This extension is important to FUELIowa members not receiving funding through the RFRRP program. RFRRP funds returned by applicants to IDALS may be reallocated to another grant recipient in 2021. It is unclear at this time whether the one-year extension for use of CARES Act funds granted by Congress applies to members receiving RFRRP grant awards. FUELIowa members with questions are encouraged to contact John Maynes (john@fueliowa.com, 605-651-3223).