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Higher Blends Infrastructure Incentive Program

Closed
Open on August 23, 2022, and Program Application Period to Closes November 21, 2022, 4:30 p.m. ES


What does this program do?

The purpose of the HBIIP is to increase significantly the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.

The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure.

Who may apply?

Transportation fueling facilities including:

  • Fueling stations, convenience stores, hypermarket fueling stations, fleet facilities (including rail and marine), and similar entities with capital investments;

Fuel distribution facilities, such as:

  • Terminal operations, depots, and midstream partners, and similarly equivalent operations.

What funding is available?

Under HBIIP, approximately $100 million is made available to:

  • Fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities with capital investments) for eligible implementation activities related to higher blends of fuel ethanol greater than 10 percent ethanol, such as E15 or higher, and biodiesel greater than 5 percent biodiesel, such as B20 or higher; and
  • Terminal operations, depots, and midstream partners, for eligible implementation activities related to higher blends of fuel ethanol greater than 10 percent ethanol, such as E15 or higher, and biodiesel greater than 5 percent biodiesel, such as B20 or higher.

What are the terms?

Awards to successful applicants will be in the form of cost-share grants for up to 50 percent of total eligible project costs, but not to exceed $5 million, whichever is less.

What's new?

These changes were made to help improve HBIIP:

  • Make approximately $75 million available to transportation fueling facilities and $25 million available to fuel distribution facilities.
  • Include rail and marine as eligible fleet facility applicants under transportation fueling facilities.
  • Include higher blends of ethanol (greater than 10 percent) as an eligible project for fuel distribution facility applicants.
  • Updated capped costs for fuel dispensers and fuel storage tanks for transportation fueling facility applicants.
  • Increase Federal cost share for replacing or installing fuel storage tanks at existing transportation fueling facilities from 25 percent to 50 percent.
  • Allow costs to be incurred once a complete application is submitted, however no construction can begin until the Agency completes its environmental review.
  • Streamlined the environmental review process for applications containing multiple site locations. 
  • Increase grant disbursement period from 18 months to 36 months
     

How do we get started?

Click the “To Apply” tab above for application instructions and other resources.

Who can answer questions?

Jeff Carpenter
(402) 318-8195
HigherBlendsGrants-access@usda.gov

Persons with disabilities that require alternative means for communication should contact the USDA Target Center at (202)720–2600 (voice).

Why does USDA Rural Development do this?

This program helps increase American energy independence. It increases the private sector supply of renewable energy.

This program will share the costs related to the upgrading of fuel dispensers (gas and diesel pumps), related equipment, and other infrastructure required at a location to ensure the environmentally safe availability of fuel containing ethanol blends greater than 10 percent or fuel containing biodiesel blends greater than 5 percent.

NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.

Federal Register Notices

Technical Guidance

  1. Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST), 40 C.F.R. Part 280 and Part 281;  

  2. Regulation of Fuels and Fuel Additives, 40 C.F.R. Part 80; 

  3. Occupational Safety and Health Standards Subpart H—Hazardous Materials Section 106—Flammable Liquids, 29 C.F.R. §1910.106;

  4. Safety and Health Regulations for Construction Subpart F—Fire Protection and Prevention Section 152—Flammable Liquids, 29 C.F.R. §1926.152; 

  5. Automotive Fuel Ratings, Certification, and Posting, 16 C.F.R. Part 306;

  6. Handbook for Handling, Storing, and Dispensing E85 and Other Ethanol-Gasoline Blends
  7. Biodiesel Handling and Use Guide

  8. Rural Development environmental requirements can be found here: RD 1970 Environmental Policies and Procedures. 

  9. Benefits of the 1970 environmental regulations are described here: 7 CFR 1970 Benefits.

FAQs

 

There are no additional requirements at the national level. 

Consult your State Single Point of Contact (SPOC) for any additional state and/or local requirements and available resources.

You may also consult your State Rural Development Energy Coordinator.


 

Jeff Carpenter
(402) 318-8195
HigherBlendsGrants-access@usda.gov

Consult your State Single Point of Contact (SPOC) for any additional state and/or local requirements and available resources.

You may also consult your State Rural Development Energy Coordinator.

Persons with disabilities that require alternative means for communication should contact the U.S. Department of Agriculture (USDA) Target Center at (202)720–2600 (voice).

Upcoming Webinars

There are currently no upcoming webinars scheduled. Please check back for updates.

Past Webinars

FY 22 Training

  • Tuesday, October 18, 2022: Office Hours | Q&As
  • Wednesday, October 5, 2022: Office Hours 
  • Tuesday, September 27, 2022: The Higher Blends Infrastructure Incentive Program (HBIIP) Fuel Distribution Facility Applicant Deep Dive | PowerPoint | Q&As
  • Thursday, September 22, 2022: The Higher Blends Infrastructure Incentive Program (HBIIP) Transportation Fueling Facility Applicant (Rail/Marine) Deep Dive | PowerPoint | Q&As
  • Tuesday, September 20, 2022: The Higher Blends Infrastructure Incentive Program (HBIP) Transportation Fueling Facility Applicant Deep Dive | PowerPoint | Q&AsRecording
  • Tuesday, September 13, 2022: The Higher Blends Infrastructure Incentive Program (HBIP) Environmental Review Process for Applicants | PowerPoint | Q&As | Recording
  • August 30, 2022: Higher Blends Infrastructure Incentive Program (HBIIP) Overview and Enrollment OrientationPowerPoint | Q&As | Recording

2nd Window Training

Environmental Review

Introduction of HBIIP