14R0061_Amend_0002.pdf

SP0600-14-R-0061

Amendment 0002

Block 14 (CONT’D)

A. The purpose of this Amendment is to address questions and/or concerns pertaining to the allocation of Commodity Credit Corporation (CCC) funds as it pertains to offers contain biofuel blends. Please see below questions and answers concerning these areas.

Question 1: A large number of biodiesel and renewable diesel biorefineries operate on a cocktail of feedstocks in order to optimize input prices. For instance, a popular feedstock similar to Used Cooking Oil may likely be utilized. However, Used Cooking Oil is not currently an eligible feedstock for CCC funds under DLA's solicitation SP0600-14-R-0061. If it is not possible to segregate finished product from the multiple feedstocks; is it acceptable to DLA if a company chose to "mass-balance" the fuel sale in order to maximize CCC funding. For example, a refinery utilized a mix of 50% qualifying and 50% non-qualifying feedstock and sold half of their production to DLA. Could the company then claim the 50% qualifying portion of the finished product that was sold to DLA to maximize CCC funding and sell the remaining fuel from other feedstocks to miscellaneous customers?

Answer: Yes, that type of evaluation is acceptable.

Question 2: Can CCC funds be used to purchase the manufacturing site and/or equipment?

Answer: No, CCC funds are for payment with respect to fuel supplied to DLA Energy under an awarded contract which was determined to be eligible for CCC funding at a set $/gallon basis.

B. Block 12 of Standard Form 1449 is updated to read: NET 15 Days.

C. Solicitation note 16 pertaining to the Prompt Payment Act and payment term for CCC payments remain unchanged.

D. All other terms and conditions remain unchanged and in full force and effect.