8-K

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                   FORM 8-K

                                CURRENT REPORT

                      Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                                 October 21, 2010
               ------------------------------------------------
               Date of Report (date of earliest event reported)


                    BION ENVIRONMENTAL TECHNOLOGIES, INC.
             ----------------------------------------------------
             Exact name of Registrant as Specified in its Charter

         Colorado                 000-19333                84-1176672
- ---------------------------    ---------------   ---------------------------
State or Other Jurisdiction    Commission File   IRS Employer Identification
     of Incorporation              Number                  Number


           Box 566/1774 Summitview Way, Crestone, Colorado 81131
         ----------------------------------------------------------
         Address of Principal Executive Offices, Including Zip Code


                                (212) 758-6622
             --------------------------------------------------
             Registrant's Telephone Number, Including Area Code


                                 Not applicable
          -----------------------------------------------------------
          Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))




ITEM 7.01  REGULATION FD DISCLOSURE.

     On October 21, 2010, the Company issued a press release to provide an
update regarding its Kreider Dairy Farms Phase 1 waste management system
project including without limitation: a) public groundbreaking scheduled for
November 10, 2010, b) scheduling of the settlement closing for the project
financing loan from the Pennsylvania Infrastructure Authority (PENNVEST) on
October 27, 2010, c) execution of a 'design-build' construction contract with
Primus Builders, Inc. for the project, and d) the launch of our website
(www.bionpa.com )for our Pennsylvania and Chesapeake Bay Watershed
activities.  The press release has been attached hereto as an exhibit and
will also be posted on our website: www.biontech.com.

ITEM 9.01  FINANCIAL STATEMENTS AND EXHIBITS.

     (a)  Financial Statements of Businesses Acquired.

          Not Applicable.

     (b)  Pro Forma Financial Information

          Not Applicable.

     (c)  Shell Company Transactions

          Not Applicable.

     (d)  Exhibits

          Exhibit 99.1  Kreider Farms Project Update Press Release dated
                        October 21, 2010



                                  SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                   Bion Environmental Technologies, Inc.



Date:  October 21, 2010            By:/s/ Mark A. Smith
                                      Mark A. Smith, President

EX-99

EXHIBIT 99.1

                     BION ENVIRONMENTAL TECHNOLOGIES, INC.

        Bion Announces Kreider Farms Groundbreaking Ceremony and Update

October 21, 2010.  New York, New York.  Bion Environmental Technologies, Inc.
(OTC BB: BNET) announced today that there will be an official groundbreaking
ceremony for its project at the Kreider Dairy Farm in Manheim, Pennsylvania,
on November 10, 2010.  Details of the groundbreaking ceremony, including time
and location, will be posted on www.bionpa.com, a new website dedicated to
Bion's Pennsylvania activities as described below.

Update

Since announcing the PA Department of Environmental Protection's (PA DEP)
approval of the demonstration permit for the Kreider Farms project on August
12, 2010, http://www.biontech.com/news/docs/Bion.PR.100812.Permit%20
Approval.pdf, Bion has been carrying out a number of pre-construction
activities including soil sampling and testing, engineering and survey work,
final system design, and securing pricing and documentation required for the
PENNVEST financing.

On October 6, 2010, Bion PA 1, LLC and Primus Builders, Inc. of Woodstock,
Georgia executed a design-build contract to complete final designs and
construct Bion's Nutrient Management Facility at Kreider Farms.  Construction
is anticipated to begin in late October/early November and with initial
operations to begin at the end of January/beginning of February 2011, subject
to contractor scheduling, equipment and materials delivery, weather and other
factors.  Primus has been working with Bion on the design process at Kreider
Farms since the preliminary design phase of the project.

PENNVEST, the Pennsylvania Infrastructure Investment Authority, has scheduled
a settlement date of October 27, 2010 for Bion's $7,754,000 loan to construct
the Kreider Farms dairy waste treatment facility. Bion previously announced
PENNVEST's approval for the low-interest project financing on January 28,
2009, http://www.biontech.com/news/pressreleases/release20090128.php.

Bion has submitted to the PA DEP its nutrient credit trading application for
Phase 2 of the Kreider Farms project (as previously announced on August 23,
2010, http://www.biontech.com/news/docs/Bion.PR.100823.Poultry%20
Protocols.pdf).  This application, which is currently in the review process,
will (upon approval by the DEP) also provide certified nitrogen and
phosphorus credits eligible to be sold as verified offsets under the
Chesapeake Bay Tributary Strategy.  The final total of verified credits will
be based upon the results from actual operations of the renewable energy
facility, as well as several other factors as described in the Bion-PA
website overview.

Bion has established a website (www.bionpa.com) to provide the Chesapeake Bay
watershed stakeholder community and Bion shareholders with a transparent
means of communicating the projects' status and, upon completion, to publish
data and results that will be consistent with Bion's credit verification
plan.  The Bion installation will demonstrate the technology's ability to
generate real, measurable, permanent and verifiable nutrient reductions from
unregulated non-point source livestock facilities such as the Kreider dairy.
Bion's approved credit certification plan is unique in that it includes
nitrogen credits from the reduction of ammonia emissions. The measurable and
verified reductions to both the local watersheds and the Chesapeake Bay
drainage basin will demonstrate the overall cost effectiveness of treating
livestock waste at the source.  Stakeholders and others will be able to post
questions and comments that Bion staff will respond to, subject to the
limitations imposed by SEC Regulation FD.
           ______________________________________________________

About Bion: Bion Environmental Technologies has provided environmental
treatment solutions to the agriculture and livestock industry since 1990.
Bion's patented next-generation technology provides a unique comprehensive
treatment of livestock waste that achieves substantial reductions in nitrogen
and phosphorus, ammonia, greenhouse and other gases, as well as pathogens,
hormones, herbicides and pesticides. Bion's process simultaneously recovers
cellulosic biomass from the waste stream to produce renewable energy.

Bion's technology enables development of large scale livestock facilities in
strategic locations that provide greater efficiencies and dramatically
reduced transportation costs but were previously impracticable due to their
environmental impact.  These environmentally-responsible, large scale
facilities can be integrated with existing or new food processing and
renewable energy production operations to substantially reduce risk and
improve the economics of all partners.  For more information, see Bion's
website: www.biontech.com.

This material includes forward-looking statements based on management's
current reasonable business expectations. In this document, the word
'expect', 'will', 'proposed' and similar expressions identify certain
forward-looking statements. These statements are made in reliance on the
Private Securities Litigation Reform Act, Section 27A of the Securities act
of 1933, as amended. There are numerous risks and uncertainties that could
result in actual results differing materially from expected outcomes.

Contact information:

Mark A. Smith                          Craig Scott
President                              Vice President-Capital Markets/IR
719-256-5329                           303-843-6191 direct