HomeMy WebLinkAbout08-23-22 Correspondence - USDA - USDA Begins Accepting Applications for $100 Million in Biofuel Infrastructure GrantsFrom:USDA Rural Development MontanaTo:AgendaSubject:USDA Begins Accepting Applications for $100 Million in Biofuel Infrastructure GrantsDate:Tuesday, August 23, 2022 12:02:48 PM
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USDA Rural Development - Together, America Prospers
Press Release
Rural Development
2229 Boot Hill Court
Bozeman, MT 59715
www.rd.usda.gov/mt
Contact: Sue Kerver
(406) 312-0190 (Cell)
(406) 585-2587 (Office)
Suzanne.Kerver@usda.gov
USDA Begins Accepting Applications for $100
Million in Biofuel Infrastructure Grants
BOZEMAN, Mont., Aug. 23, 2022 – U.S. Department of Agriculture (USDA) Secretary
Tom Vilsack 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.
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.
“The Biden-Harris Administration recognizes that rural America is the key to reducing our
reliance on fossil fuels and giving Americans cleaner, more affordable options at the
pump,” Vilsack said. “Biofuels are homegrown fuels. Expanding the availability of higher-
blend fuels is a win for American farmers, the rural economy and hardworking Americans
who pay the price here at home when we depend on volatile fuel sources overseas.”
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
California, Delaware, Illinois, Maryland, New Jersey, New York and South Dakota.
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.
Background
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.
Additional information also is available on Grants.gov or page 51641 of the Aug. 23, 2022,
Federal Register.
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.
To learn more about business investment resources for Montana's rural
areas, contact Montana's Business and Cooperative Programs Director, Lad Barney, at
(406) 309-3350 or lad.barney@usda.gov.
USDA 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/mt. If you’d like to subscribe to USDA Rural Development updates,
visit our GovDelivery subscriber page.
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