USDA Announces $450 Million in New Funding for Higher Biofuel Blending Infrastructure Grants

USDA announced on June 26, 2023 that it will begin accepting new applications for $450 million in grants through Higher Blends Infrastructure Incentive Program (HBIIP). These grants support the infrastructure needed to lower out-of-pocket costs for energy marketers to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks. The HBIIP funds are available for both retail and wholesale fueling/storage facilities. There will be five application windows to distribute the $450 million in HBIIP grants between July 1, 2023, and Sept. 30, 2024. A sixth application window will be opened if funding has not been exhausted.

How the $450 Million Will be Distributed

HBIIP seeks to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products by sharing the costs to build and retrofit biofuel-related infrastructure.

Grants cover up to 75% or $5 million of total project costs to help facilities convert to higher-blend fuels. The fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.
The $450 million in new funds will be available quarterly starting July 1. Each quarter, $90 million will be available to support a variety of fueling operations:

Approximately $67.5 million will be made available to transportation fueling facilities, including fueling stations; convenience stores; larger retail stores that also sell fuel; and transportation, freight, rail and marine fleet facilities.

Approximately $18 million will be available to fuel distribution facilities, including terminal operations, depots and midstream operations.

Up to $4.5 million will be made available to home heating oil distribution facilities.

How to Apply

The USDA will hold a webinar on July 6, 2023 at 3:00 PM Eastern Time to provide applicants an overview of the HBIIP program (including recent updates), along with detailed information on how to enroll for access to the HBIIP application system, important dates, and will reserve time to answer questions. Those interested can register here to attend a webinar.