USDA to make up to $100M in grants available for renewable fuels

In Washington, D.C., Agriculture Secretary Sonny Perdue announced that the U.S. Department of Agriculture intends to make available up to $100 million in competitive grants for activities designed to expand the sale and use of renewable fuels. USDA will make the grant funds available under the Higher Blends Infrastructure Incentive Program (HBIIP).

Its purpose is to increase significantly the sale and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to marketing higher blends by sharing the costs related to building out biofuel-related infrastructure.

Grants will be available to help transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to installing, retrofitting and/or upgrading fuel storage, dispenser pumps, related equipment and infrastructure.

USDA plans to make available approximately $86 million for implementation activities related to higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel.

The Department plans to publish application deadlines and other program information in the Federal Register this spring.