USDA is Seeking Applications for Grants to Increase Biodiesel and Ethanol Fuel Sales

Erin McDuff
Release Date
Jan 05, 2021

The U.S. Department of Agriculture (USDA) Rural Development is accepting applications for grants to increase the availability and sale of biodiesel and ethanol fuels in the U.S. 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.

Higher Blends Infrastructure Incentive Program (HBIPP) grants may be used to lower the out-of-pocket costs for businesses to convert to higher biodiesel and ethanol blends by sharing the costs for installing or upgrading fuel dispensers, infrastructure such as storage tanks and systems, and related equipment.

Under this second application window, approximately $22 million is available nationwide, $15 million of which will be made available to fueling stations and fleet facilities while the remaining $7 million is made available to fuel distribution facilities. The grants can cover up to 50 percent of the total eligible project costs, but will not exceed $5 million.

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 are awarded through a competitive process. Electronic applications must be submitted by 2:59 p.m. PST on January 19, 2021.

To discuss a potential application, contact Jessie Huff, Energy Coordinator, (503) 414-3314. For additional information, see page 83046 of the December 21, 2020, Federal Register.