HURON, S.D., June 27, 2023 – U.S. Department of Agriculture (USDA) Rural Development South Dakota State Director Nikki Gronli today announced that USDA plans to invest up to $61,500 from the Inflation Reduction Act to increase the availability of domestic biofuels and give South Dakotans additional cleaner fuel options at the pump.
“USDA plays a key role in supporting efforts to enable energy independence with homegrown biofuels,” Gronli said. “We are strengthening our energy independence, creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities.”
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). Secretary Vilsack today announced 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. These grants will continue to support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks.
As part of today’s announcement, Bonn Express Inc., located in Aberdeen, will replace three E-15 dispensers at a local fueling station. It is estimated this project will increase the amount of ethanol sold by nearly 290,000 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. Those interested may also register to attend a webinar scheduled for July 6 at 3:30 p.m. ET.
Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America.
It provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions. For more information on the Inflation Reduction Act, visit: https://www.rd.usda.gov/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.
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