U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA plans to invest up to $500 million from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and give Americans cleaner fuel options at the pump.
“President Biden’s Inflation Reduction Act is a historic investment that will expand clean energy, lower costs for Americans, and build an economy that benefits working families and small businesses,” Vilsack said. “By expanding the availability of homegrown biofuels, we are strengthening our energy independence, creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities.”
In December 2022, USDA made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP). Secretary Vilsack announced the first of 59 projects that will receive a total of $25 million. To learn more, you may view the list of Higher Blends Infrastructure Incentive Program awardees.
Among the awards Secretary Vilsack announced:
- In Wisconsin: BP Kenosha Travel Plaza LLC will use a $259,853 grant to create infrastructure to expand the sales and use of renewable fuels. This project will install four E15 dispensers, two B20 dispensers, one ethanol storage tank, and one biodiesel storage tanks at one fueling station located in Bristol, Wisconsin. This project projects to increase the amount of biodiesel sold by 1,002,530 gallons per year.
The USDA announced that in July the Department will begin to accept applications for $450 million in grants through HBIIP. These grants will lower out-of-pocket costs for transportation fueling and distribution facilities. The grants will also install and upgrade biofuel-related infrastructure such as pumps, dispensers, and storage tanks. Additional awards will be announced in the coming weeks.
Background: Higher Blends Infrastructure Incentive Program
HBIIP seeks to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products. Sharing costs will build and retrofit biofuel-related infrastructure.
Grants cover up to 75% or $5 million of total project costs to help facilities convert to higher-blend fuels. The fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.
The $450 million in new funds will be available quarterly starting July 1. Each quarter, $90 million will be available to support a variety of fueling operations:
- Approximately $67.5 million will be available to transportation fueling facilities. This includes fueling stations, convenience stores, and larger retail stores that also sell fuel. Transportation, freight, rail and marine fleet facilities will also be covered.
- Approximately $18 million will be available to fuel distribution facilities, including terminal operations, depots and midstream operations.
- Up to $4.5 million will be available to home heating oil distribution facilities.
There will be five application windows for HBIIP between July 1, 2023, and Sept. 30, 2024. A sixth application window will open if funding has not been exhausted.
For more information, visit the HBIIP webpage, the Federal Register or Grants.gov. Those interested may also register to attend a webinar on July 6 at 3:30 p.m. ET.
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