Higher Blends Infrastructure Incentive Program

What is the Higher Blends Infrastructure Incentive Program?

The Higher Blends Infrastructure Incentive Program is a new program that will expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels.

Agriculture Secretary Sonny Perdue announced on February 28, 2020 that the U.S. Department of Agriculture (USDA) intends to make available up to $100 million in competitive grants for activities designed to expand the sale and use of renewable fuels.

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

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Contact EnergyPrograms@usda.gov for more information.

Program Information

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 market 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.

For additional information, see page 11946 of the Feb. 28, 2020, Federal Register.

Resources

The material below provides information on topics discussing federal regulations as they relate to selling biofuels, handling, storing, and dispensing ethanol-gasoline blends.

Program Benefits


E15 Approval Status for Conventional Light-Duty Vehicles
Renewable Fuels Association

U.S. farmers are producing record amounts of feedstocks for renewable fuels. However, lower commodity prices, paired with this record production, have created uncertain times for U.S. feedstocks producers. Biofuels, which contribute to energy security, reduce air pollution, and support rural economic development, are an important market for U.S. feedstock producers.

Approximately 93 percent of the 263 million vehicles registered in the United States are able to use E15. In addition, there are more than 22 million flex-fuel vehicles (FFVs) in the United States which are capable of utilizing ethanol blends up to E85. The HBIIP program will aid in helping rural communities build robust and sustainable economies