May 07, 2020
USDA intends to make available up to $100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels.
“America’s energy independence is critical to our economic security, and President Trump fully recognizes the importance of our ethanol and biofuels industries and the positive impacts they deliver to consumers and farmers with an affordable, abundant and clean burning fuel,” Secretary Perdue said in a news release this week. “American ethanol and biofuel producers have been affected by decreased energy demands due to the coronavirus, and these grants to expand their availability will help increase their use during our economic resurgence.”
The Higher Blends Infrastructure Incentive Program (HBIIP) consist of up to $100 million in funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and/or offering sales incentives for the installation of fuel pumps, related equipment and infrastructure.
National Biodiesel Board (NBB) welcomed the announcement.
“The Higher Blends Infrastructure Incentive Program will help the industry expand consumers' access to cleaner, better transportation and heating fuels in the future," said Kurt Kovarik, NBB's VP of federal affairs.
Biodiesel is an important market for U.S. soy growers, providing value for surplus oil that’s a co-product of soybean protein meal. ASA supports expansion that reflects the growth potential of the renewable fuels industry.
USDA is making the grants available under the Higher Blends Infrastructure Incentive Program (HBIIP). The program is intended to increase significantly the sale and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.
Grants for up to 50% of total eligible project costs, but not more than $5 million, are available to vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.
USDA plans to make available approximately $86 million for implementation activities related to higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel. Higher biofuel blends are fuels containing ethanol greater than 10% by volume and/or fuels containing biodiesel blends greater than 5% by volume.
For application information and other program details, see the public inspection notice in the Federal Register (PDF, 369 KB), or visit the Higher Blends Infrastructure Incentive Program web page.