USDA is Accepting Applications for Grants to Expand the Availability of Biodiesel and Ethanol Fuels

Erin McDuff
Release Date
Jul 16, 2020

The U.S. Department of Agriculture (USDA) Rural Development is accepting applications for grants to expand the sale and availability of biodiesel and ethanol fuels. Expanding the sale of biofuels will provide consumers with more choices when they fill up at the pump, including environmentally-friendly fuel with decreased emissions, driving demand for our farmers and improving the air we breathe. 

Up to $100 million is available nationwide through USDA's new Higher Blends Infrastructure Incentive Program (HBIIP). Transportation fueling and biodiesel distribution facilities may use the grants to convert to higher ethanol and biodiesel blends by sharing the costs of installing, retrofitting, or upgrading fuel storage, dispenser pumps, and related equipment.

Vehicle fueling facilities are eligible to apply, including but not limited to gas stations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners, and distribution facilities.

The grants may be used for up to 50 percent of total eligible project costs, but will not exceed $5 million. USDA is making available approximately $86 million for implementation activities related to higher blends of fuel ethanol and approximately $14 million for higher blends of biodiesel.

Higher biofuel blends are fuels containing ethanol greater than 10 percent by volume and fuels containing biodiesel blends greater than five percent by volume. 

The grants are awarded through a competitive process. Electronic applications must be submitted by 8:59 p.m. Pacific Time on August 13, 2020. Paper applications will not be accepted.

To discuss a potential application, contact Jessie Huff, Energy Coordinator, (503) 414-3314. Additional information is also available on page 29394 of the May 15, 2020, Federal Register.