Funding Will Increase Availability of Clean Fuels Across the Nation
HURON, S.D., Sept. 6, 2022 – U.S. Department of Agriculture (USDA) Rural Development South Dakota State Director Nikki Gronli today announced that USDA is accepting applications for $100 million in grants to increase the sale and use of biofuels derived from U.S. agricultural products.
“South Dakota is key to reducing our reliance on foreign fuel sources while also increasing production of biofuels within our borders,” said Gronli. “Through this grant program, South Dakota farmers make cleaner, more affordable options at the pump a reality for Americans.” [Audio: MP3, 406KB, 17 seconds]
This additional funding follows an April investment of $5.6 million through HBIIP that is expected to increase the availability of biofuels by 59.5 million gallons per year in South Dakota, Illinois, Delaware, Maryland, New Jersey, New York and California.
In June, USDA also announced that it had provided $700 million in relief funding to more than 100 biofuel producers in 25 states who experienced market losses due to the pandemic.
These investments reflect the goals of President Biden’s Inflation Reduction Act, which addresses immediate economic needs and includes the largest ever federal investment in clean energy for the future. The law includes another $500 million aimed at increasing the sale and use of agricultural commodity-based fuels. This funding will allow USDA to provide additional grants for infrastructure improvements related to blending, storing, supplying and distributing biofuels.
Gas prices continue to fall, at the fastest pace in over a decade. Biofuels are an important part of the Biden-Harris Administration’s commitment to lowering gas prices for the American people.
USDA is making the funding available through the Higher Blends Infrastructure Incentive Program (HBIIP). This program seeks to market higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers and storage tanks.
Under HBIIP, USDA provides grants to transportation fueling and distribution facilities. These grants lower the out-of-pocket costs for businesses to install and upgrade infrastructure and related equipment.
The $100 million available now will support a variety of fueling operations, including filling stations, convenience stores and larger retail stores that also sell fuel. The funds will also support fleet facilities including rail and marine, and fuel distribution facilities, such as fuel terminal operations, midstream operations, distribution facilities as well as home heating oil distribution centers.
The grants will cover up to 50% of total eligible project costs – but not more than $5 million – to help owners of transportation fueling and fuel distribution facilities convert to higher blends of ethanol and biodiesel. These higher-blend fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.
Applications must be submitted by 4:30 p.m. ET Nov. 21, 2022. Visit the HBIIP webpage to learn more, sign up for webinars and apply.
USDA is offering priority points to projects that advance key priorities under the Biden-Harris Administration to help communities recover from the COVID-19 pandemic, advance equity and combat climate change. These extra points will increase the likelihood of funding for projects that will advance these key priorities for people living in rural America.
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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