ANKENY, Iowa, Oct. 8, 2020 – U.S. Secretary of Agriculture Sonny Perdue announced today that the U.S. Department of Agriculture (USDA) has invested over $9.3 million in grants to increase American ethanol and biodiesel sales. These funds were made available through the Higher Blends Infrastructure Incentive Program (HBIIP) to 15 Iowa recipients.
“Investments made through the Higher Blends Infrastructure Incentive Program are helping rural communities build stronger economies and will give consumers more choices when they fill up at the pump,” said Secretary Perdue. “President Trump has expanded ethanol use by unleashing year-round E15 and the result is more demand for American farmers and more affordable fuel for American consumers.”
“The Higher Blends Infrastructure Incentive Program will increase domestic demand for cleaner burning, American-made biofuels at a critical time,” said Grant Menke, State Director of USDA Rural Development in Iowa. “Under the leadership of President Trump and Secretary Perdue, USDA is proud to enhance rural prosperity by investing in key ethanol and biodiesel infrastructure, because when rural America thrives, all America thrives.”
USDA is funding projects in California, Florida, Iowa, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, Ohio, Utah, and Wisconsin. Examples of Iowa projects include:
· Casey’s General Stores, Inc., will use a $4.9 million grant to replace 346 dispensers at 70 fueling stations in Illinois, Arkansas, Missouri, Nebraska, Oklahoma, Wisconsin, Kentucky, Indiana, Iowa, Kansas, Minnesota, North Dakota and South Dakota. This project is estimated to increase ethanol sales by 19.6 million gallons per year.
· United Farmers Cooperative will use a $93,000 grant to replace six dispensers and two storage tanks at one fueling station in Iowa. This project is estimated to increase ethanol sales by nearly 300,000 gallons per year.
· R.A.M., Inc., will use a $130,634 grant to replace six dispensers and three storage tanks at two fueling stations in Iowa. This project is estimated to increase ethanol sales by nearly 900,000 gallons per year.
· Kum & Go L.C. will use a $1.5 million grant to install 128 dispensers at 17 fueling stations in Colorado Arkansas, Missouri, Iowa, Oklahoma and Nebraska. This project is estimated to increase ethanol sales by nearly 23.2 million gallons per year.
USDA plans on announcing tens of millions of dollars in additional HBIIP investments in the coming weeks.
The Higher Blends Infrastructure Incentive Program helps transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment and infrastructure.
Eligible applicants are vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities. Higher biofuel blends are fuels containing ethanol greater than 10 percent by volume and/or fuels containing biodiesel blends greater than five percent by volume.
For more information on USDA’s HBIIP Program, visit the Higher Blends Infrastructure Incentive Program web page.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs 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 areas. For more information, visit www.rd.usda.gov.
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