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,” 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.”

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.

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.

The Renewable Fuels Association is thanking USDA for its support of biofuel infrastructure projects. “We’re thrilled to see this new announcement from USDA Secretary Tom Vilsack, which will help bring lower-cost biofuel blends like E15 and E85 to more fuel retail locations around the country,” said Troy Bredenkamp, RFA senior vice president for government and public affairs. “RFA has been proud to assist retailers in the application process and to move these grants forward. This program is instrumental in bringing the benefits of biofuels to drivers around the country who want access to lower-cost fuel that is better for the environment and public health. We are grateful to President Biden and Secretary Vilsack for their support of this important initiative.” 

Growth Energy is applauding USDA’s biofuel infrastructure investments. “Secretary Vilsack’s announcement is great news for biofuel producers, retailers, and consumers,” said Growth Energy CEO Emily Skor. “Over the last two summers, we’ve seen E15 prove itself again and again as a proven source of savings for working families and a shield against volatile fossil fuel markets. The grant funding announced today will help our retail partners to expand options at the pump so more American drivers can save money and reduce their carbon emissions.”  

The American Coalition for Ethanol is highlighting improvements USDA is making to HBIIP. “ACE looks forward to seeing more details of the program when they are released,” said Ron Lamberty, chief marketing officer at ACE. “We thank USDA for allowing us to provide feedback and recommend changes we hope will make funds more accessible to single-store and small chain retailers. Those retailers are key to widespread availability of E15 and E85 and ACE continues to fight for them as the program evolves at USDA. Even something as simple as the multiple application periods announced today will help marketers who don’t have staff or time to gather information and fill out complicated grant applications. In past rounds, if they weren’t sure they could complete the application by the due date, they couldn’t risk the time. Now they’ll know when another application opens and can plan accordingly.

“Hopefully small retailers will also qualify for the higher 75 percent cost share,” he added. “For the last few years, ACE has concentrated our HBIIP informational efforts on increasing awareness of HBIIP funds, de-mystifying the application process, and letting retailers know help is available. At trade shows earlier this year, however, retailers who never quite got around to applying for past HBIIP grants told us IRA funds covering 75 percent of their equipment cost changes would take applying for the program from possibility to probability.

“We also appreciate USDA HBIIP Program Manager Jeff Carpenter’s efforts to continue making the program more accessible to retailers, by reaching out to ACE and others and allowing us to provide observations and input we received from our industry partners in previous rounds of the program,” Lamberty continued.

Additional information is available on the USDA website.