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Biden-Harris Administration Announces Funding for Homegrown Biofuels in North Dakota

Chris Freeman
Release Date

BISMARCK, N.D., June 26, 2023 – U.S. Department of Agriculture (USDA) Rural Development State Director Erin Oban today announced that USDA RD invested over $100,000 from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and give Americans additional cleaner fuel options at the pump.

“We’re thrilled that two North Dakota rural distributors – one servicing stations in Carrington and another in Park River – will be supported by these grant funds,” said Oban. “These two projects will increase ethanol production by well over 400,000 gallons per year. Investing in our infrastructure, including updates and upgrades to increase access to higher-blend biofuels, helps keeps costs lower at the pump for consumers and provides our ag producers with a stable, reliable market.”

In December 2022, USDA made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP). Today’s announcement included the first awardees of 59 infrastructure projects that will receive a total of $25 million. The list of awardees is available here. In addition, USDA announced today that in July the Department will begin accepting applications for $450 million in grants through HBIIP.

In North Dakota:

  • Northdale Oil Company will use a $41,163 grant to create infrastructure and to expand the sales and use of renewable fuels. Northdale Oil Inc is the owner of 10 or fewer fueling stations. This project will install two E15 dispensers at one fueling station located in North Dakota. Station locations impacted by this grant are: Park River. This project projects to increase the amount of ethanol sold by 290,072 gallons per year.
  • Arrowhead Prairie Co-op will use a $85,325 grant to create infrastructure to expand the sales and use of renewable fuels. Arrowwood Prairie Co-Op is the owner of 10 or fewer fueling stations. This project will replace two E15 dispensers, four E85 dispensers, and five ethanol storage tanks at one fueling station located in North Dakota. Station locations impacted by this grant are: Carrington. This project projects to increase the amount of ethanol sold by 149,648 gallons per year.

Background: Higher Blends Infrastructure Incentive Program

HBIIP seeks to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products by sharing the costs to build and retrofit biofuel-related infrastructure.

Grants cover up to 75% or $5 million of total project costs to help facilities convert to higher-blend fuels. The fuels must be greater than 10% for ethanol and greater than 5% for biodiesel. The $450 million in new funds will be available quarterly starting July 1. Each quarter, $90 million will be available to support a variety of fueling operations:

  • Approximately $67.5 million will be made available to transportation fueling facilities, including fueling stations; convenience stores; larger retail stores that also sell fuel; and transportation, freight, rail and marine fleet facilities.
  • Approximately $18 million will be available to fuel distribution facilities, including terminal operations, depots and midstream operations.
  • Up to $4.5 million will be made available to home heating oil distribution facilities.

There will be five application windows for HBIIP between July 1, 2023, and Sept. 30, 2024. A sixth application window will be opened if funding has not been exhausted. For more information, visit the HBIIP webpage, the Federal Register or Grants.gov. 

Background: Inflation Reduction Act

This announcement is part of President Biden’s Investing in America agenda to grow the American economy from the bottom up and the middle out by rebuilding our nation’s infrastructure, driving over $470 billion in private-sector manufacturing investments, creating good-paying jobs, and building a clean-energy economy to tackle the climate crisis and make our communities more resilient.

The Biden-Harris Administration championed the Inflation Reduction Act to help provide new funding and unprecedented incentives to expand clean energy, transform rural power production, create jobs and spur economic growth. It is the largest single investment in rural electrification since the Rural Electrification Act of 1936.

For more information visit: Inflation Reduction Act.

USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean-energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov

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