USDA Announces $210M for Biofuels Infrastructure
21 States and Private Partners Match Federal Funds to Expand Infrastructure and Increase Fuel Options for Consumers
In Florida, US Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture is partnering with 21 states through the Biofuel Infrastructure Partnership (BIP) to nearly double the number of fueling pumps nationwide that supply renewable fuels to American motorists.
In May 2015, USDA announced the availability of $100 million in grants through the BIP, and that to apply states and private partners match the federal funding by a 1:1 ratio. USDA received applications requesting over $130 million, outpacing the $100 million that is available. With the matching commitments by state and private entities, the BIP is investing a total of $210 million to strengthen the rural economy.
At the first retail fueling station in Kissimmee, suburb of Orlando, Fla., selling E85 and E15 ethanol blends, Secretary Vilsack announced the states and amounts in which $100 million for ethanol infrastructure under the Biofuels Infrastructure Program (BIP) has been awarded. While E85 ethanol can be used in flex-fuel gasoline vehicles, E15 fuel can be used in 2001 and newer vehicles, and both have been proven to reduce emissions such as greenhouse gases, cost less than regular gas, and ethanol is a domestically produced, renewable fuel. The Citgo, 3297 S. John Young Pkwy., 407-932-4443, sells both, along with biodiesel and traditional fuels.
“This major investment in renewable energy infrastructure will give Americans more options that not only will suit their pocketbooks, but also will reduce our country’s environmental impact and bolster our rural economy,” said Vilsack. “The Biofuel Infrastructure Partnership is one more example of how federal funds can be leveraged by state and private partners to deliver better and farther reaching outcomes for taxpayers. The volume and diverse geographic locations of partners willing to support this infrastructure demonstrate the demand across the country for lower cost, cleaner, American-made fuels. Consumers will begin to see more of these pumps in a matter of months.”
The 21 states participating in the BIP include Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Virginia, West Virginia, and Wisconsin. The amount awarded to each state is available at: www.fsa.usda.gov/programs-and-services/energy-programs/bip/index. The final awards being announced today are estimated to expand infrastructure by nearly 5,000 pumps at over 1,400 fueling stations.
A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy that consumers can purchase. The new partnership will increase the number of pumps, storage and related infrastructure that offer higher blends of ethanol, such as E15, E85, and even intermediate combination blends.
USDA’s Office of the Chief Economist just released a comprehensive report on ethanol. The report, titled U.S. Ethanol: An Examination of Policy, Production, Use, Distribution, and Market Interactions, brings clarity to the complex interaction of ethanol production with agricultural markets and government policies.
The corn ethanol industry is the largest biofuel producer in the country, with production increasing from about 1.6 billion gallons in 2000 to just over 14 billion gallons in 2014, stimulating economic activity in rural communities. The complete report is here.
Reaction from stakeholders
“USDA in general and Secretary Vilsack particular are to be commended for providing consistent, concerted, and courageous leadership when it comes to investing in American energy,” said Renewable Fuels Association CEO Bob Dinneen. “These matching grants will inject the capital that is needed to build out the infrastructure that is critical for increasing consumer access to higher ethanol blends. Today’s announcement by USDA underscores the importance of having the private sector invest in our nation’s biofuels industry. Our hope is that EPA is watching and paying close attention.”
“There is no greater champion for the renewable fuels industry than Secretary Vilsack,” said Tom Buis, co-chairman of Growth Energy. “He knows that by using homegrown American fuels, we are creating jobs that cannot be outsourced, improving our environment and cleaning the air we breathe, all while reducing our dangerous dependence on foreign oil and fossil fuels. Secretary Vilsack understands that this industry is helping rural America experience a renaissance in innovation, job creation, development and economic growth.”
“Iowa Corn farmers commend Secretary Vilsack on this funding commitment as it will nearly double the number of biofuel pumps nationwide, providing American consumers with additional fuel choices,” said Bob Hemesath, a farmer from Decorah and President of the Iowa Corn Growers Association. “In Iowa, this initiative will provide consumers with greater access to higher blends of ethanol, all while lowering the cost at the pump, adding value to agricultural products such as corn and helping eliminate our dependence on foreign oil.”
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