USDA Accepting Applications for $100 Million in Biofuel Infrastructure Grants
By Lynn L. Bergeson and Carla N. Hutton
The U.S. Department of Agriculture (USDA) announced on August 23, 2022, that USDA is accepting applications for $100 million in grants to increase the sale and use of biofuels derived from U.S. agricultural products. 87 Fed. Reg. 51641. The funding is available through the Higher Blends Infrastructure Incentive Program (HBIIP). The program seeks to market higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers, and storage tanks. Applications are due by 4:30 p.m. (EST) on November 21, 2022.
Under HBIIP, USDA provides grants to transportation fueling and distribution facilities. These grants lower the out-of-pocket costs for businesses to install and upgrade infrastructure and related equipment. The $100 million will support a variety of fueling operations, including filling stations, convenience stores, and larger retail stores that also sell fuel. The funds will also support fleet facilities, including rail and marine, and fuel distribution facilities, such as fuel terminal operations, midstream operations, and distribution facilities, as well as home heating oil distribution centers.
The grants will cover up to 50 percent of total eligible project costs — but not more than $5 million — to help owners of transportation fueling and fuel distribution facilities convert to higher blends of ethanol and biodiesel. These higher-blend fuels must be greater than ten percent for ethanol and greater than five percent for biodiesel.