USDA Announces $100 Million Higher Biofuels Blend Infrastructure Grant Program

The United States Department of Agriculture announced the availability of up to $100 million in competitive grants available to petroleum marketers and heating oil dealers for infrastructure upgrades designed to increase the sales of higher blends of ethanol and biodiesel.

            The deadline for applications has not been set yet, but motor and heating fuel dealers can prepare applications for later submission by Clicking Here.

The Higher Blends Infrastructure Incentive Program (HBIIP) awards cost-share grants of up to 50 percent of total eligible project costs.

The grants are available in amounts up to $5 million per project for gas stations and other fuel distribution facilities that retrofit storage and dispensing equipment compatible with ethanol blends greater than E10 and biodiesel blends greater than B5.

The program will share 50 percent of the costs related to the upgrading of fuel dispensers (gas and diesel pumps) and attached equipment, storage tank system components including tanks, pumps, ancillary equipment, lines, gaskets, and sealants as well as heating and ancillary equipment required for biodiesel storage.

Eligible entities include fueling stations, convenience stores, hypermarket retailer fueling stations, fleet facilities as well as fuel/biodiesel terminal operations, midstream partners, and heating oil dealers.

The Agency adopted PMAA’s requests made in written comments to earmark funds specifically for small business gas station owners under USDA’s Targeted Assistance Goal.

Specifically, 40 percent ($40 million) of the HBIIP funds will be available to applicants owning 10 gas stations or fewer and for replacement of E15 compatible pipe dope gaskets and sealants.

Approximately $14 million will be made available to terminal operators, including heating oil distributors, related to biodiesel blends greater than 5 percent biodiesel, such as B20 or higher.

Grant recipients are responsible for securing the remainder of the total eligible project costs not covered by grant funds. Matching funds are comprised of eligible in-kind contributions from third parties and/or cash.

TAP HERE for all articles in May 11 EXPRESS Update