The Biden administration is expected to announce $700 million in COVID-related biofuel industry grants on Tuesday, pairing the announcement with new biofuel mandates that are likely to disappoint the industry, according to two sources familiar with the announcement. The $700 million in aid for biofuel producers is part of the USDA Pandemic Assistance for Producers initiative first announced in March and paid for with discretionary funding and other COVID funding that went unspent by the previous administration. The administration is also set to announce $100 million in new biofuel infrastructure aid on Tuesday, according to two sources familiar with the matter. Reporting By Jarrett Renshaw, Stephanie Kelly and Leah Douglas; Editing by Mark Porter Our Standards: The Thomson Reuters Trust Principles.