Abstract: Embodiments of the present disclosure are directed to compositions of and methods for pelletized recycled asphalt shingles used in asphalt pavement. In particular, the recycled asphalt shingle pellets include a soft center with a biofuel or bio-oil diluent, and a harder, water-resistant shell coating. It is believed that by using a biofuel, such as biodiesel, more recycled asphalt shingles material may be used in the formulation of asphalt cement without compromising the performance grade of the asphalt cement.