USDA Announces $100M for American Biofuels Infrastructure

U.S. Secretary of Agriculture Sonny Perdue recently announced the Department of Agriculture intends to make available up to $100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels.

The Higher Blends Infrastructure Incentive Program consist of up to $100 million funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and/or offering sales incentives for the installation of fuel pumps, related equipment and infrastructure.

Grants for up to 50% of total eligible project cots, but not more than $5 million are available to vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.

USDA plans to make available approximately $86 million for implementation activities related to higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel. Higher biofuel blends are fuels containing ethanol greater than 10% by volume and/or fuels containing biodiesel blends greater than 20% by volume.

Application period: May 15 – August 12, 2020 (final date will be finalized soon, but is expected to be 90 days after the official start).

Website: https://www.rd.usda.gov/programs-services/higher-blends-infrastructure-incentive-program

Application process opens May 15th. A form to gain access to the application system is expected to be posted by the 15th at the website above. 

Steps that can be taken now to prepare for an application:

  • Obtain equipment and installation bid(s) to identify what is needed at your location(s) to offer E15 and/or E85.
  • Obtain or verify your DUNS number. If you do not already have one, DUNS numbers are free to obtain and required to receive a grant from the federal government. https://fedgov.dnb.com/webform/.
  • If you haven’t already, register your DUNS number at SAM.gov.
  • Create a USDA E-Authentication Customer Account.

More information

USDA is hosting webinars to provide program and application overviews:

  • Tuesday, May 12th, 1:00pm CT
  • Online viewing click here.
  • Phone-only: 706-418-5005, Passcode: 72734457#
  • Tuesday, May 19th, 1:00pm CT
  • Online viewing click here:
  • Phone-only: 706-418-5005, Passcode: 02530265#
  • Tuesday, May 26th, 1:00pm CT
  • Online viewing click here:
  • Phone-only: 706-418-5005, Passcode: 02530265#