USDA now accepting applications for $100M in blending infrastructure grants

In Washington, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA is accepting applications for $100 million in grants to increase the sale and use of biofuels derived from U.S. agricultural products.

USDA is making the funding available through the Higher Blends Infrastructure Incentive Program (HBIIP). This 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

This additional funding follows an April investment of $5.6 million through HBIIP that is expected to increase the availability of biofuels by 59.5 million gallons per year in California, Delaware, Illinois, Maryland, New Jersey, New York and South Dakota.

In June, USDA also announced that it had provided $700 million in relief funding to more than 100 biofuel producers in 25 states who experienced market losses due to the pandemic.

These investments reflect the goals of President Biden’s Inflation Reduction Act, which addresses immediate economic needs and includes the largest ever federal investment in clean energy for the future. The law includes another $500 million aimed at increasing the sale and use of agricultural commodity-based fuels. This funding will allow USDA to provide additional grants for infrastructure improvements related to blending, storing, supplying and distributing biofuels.