June 27, 2023
BY Erin Voegele
The USDA on June 26 announced plans to invest up to $500 million in biofuel infrastructure projects via funding from the Inflation Reduction Act, including a new $450 million funding opportunity through the Higher Blends Infrastructure Incentive Program that is scheduled to open in July.
“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,” said Agricultural Secretary Tom Vilsack. “By expanding the availability of homegrown biofuels, we are strengthening our energy independence,Agricultural Secretary Tom Vilsack creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities.”
The USDA said it will begin accepting applications for the $450 million in grants through HBIIP in July. These grants will continue to support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure, such as pumps, dispensers and storage tanks.
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A notice set to be published in the Federal Register on June 28 explains that that the $450 million in HBIIP funding is allocated for fiscal years (FYs) 2023 and 2024. Applications windows for the program will take place quarterly for five quarters, starting on July 1, 2023 through Sept. 30, 2024, with the option for a sixth application window if funding has not been exhausted.
The USDA on June 26 also announced $25 million in HBIIP awards made via a $50 million funding opportunity that opened in December 2022. That $25 million is being split between 59 biofuel infrastructure projects. The agency said additional awards will be announced in the coming weeks.
Clean Fuels Alliance America thanked USDA for its support of biofuels infrastructure and congratulated member companies and industry partners that received matching funds for projects, including Crimson Renewable Energy, New Leaf, and World Energy. Out of the $25 million in grants announced on June 26, more than $6.9 million will be used to support consumer access to more than 104 million gallons of biodiesel.
“Clean Fuels and its members appreciate the partnership with USDA to support industry investments in infrastructure for biodiesel,” said Kurt Kovarik, vice president of federal affairs with Clean Fuels. “This program enjoys bipartisan congressional support and it is successfully opening new markets to biodiesel.”
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“Clean Fuels congratulates member companies Crimson Renewable Energy, New Leaf, and World Energy for specific projects and applauds the overall progress for the entire industry,” Kovarik continued. “These projects will increase the supply of better, cleaner fuels in states and regions where consumer demand is increasing quickly.”
Additional information is available on the USDA website.
The biodiesel industry has been facing turbulence, but the release of long-overdue policy could course-correct.
The U.S. House of Representatives early on May 22 narrowly passed a reconciliation bill that includes provisions updating and extending the 45Z clean fuel production tax credit. The bill, H.R. 1, will now be considered by the U.S. Senate.
U.S. EPA Administrator Lee Zeldin on May 21 stressed the agency is working “as fast as humanly possible” to finalize a rulemaking setting 2026 RFS RVOs during a hearing held by the U.S. Senate Committee on Environment and Public Works.
Chevron U.S.A. Inc. on May 15 filed a notice with the Iowa Workforce Development announcing plans to layoff 70 employees at its Ames, Iowa, location by June 18. The company’s Chevron REG subsidiary is headquartered in Ames.
Clean Fuels Alliance America on May 22 delivered a letter to U.S. EPA Administrator Lee Zeldin, urging him to set the 2026 RFS biomass-based diesel volume at no less than 5.25 billion gallons and allow continued growth in the 2027 volumes.