USDA Allocates $39 Million to Boost Biofuel Availability and Unveils $200 Million Grant Program

U.S. Department of AgricultureImage via USDA

WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) has announced a significant investment aimed at enhancing the domestic biofuel sector, with Deputy Secretary Xochitl Torres Small revealing the allocation of $39 million in grants to business owners across 18 states. This funding aims to increase the accessibility of cleaner, more affordable fuel options while concurrently supporting the American economy.

In addition to these grants, the USDA is introducing a new financial initiative, the Biobased Market Access and Development Grants, which will draw from $200 million in Commodity Credit Corporation (CCC) funds. Both these financial measures are part of President Biden’s broader Investing in America agenda, supported by the Inflation Reduction Act and CCC funding.

Deputy Secretary Torres Small emphasized the strategic importance of these initiatives, noting their potential to reduce fuel costs for American families, bolster the country’s energy independence, and generate new revenue streams for agricultural producers. Moreover, these efforts are expected to create well-paid jobs in rural communities, thereby strengthening local economies and combating climate change.

The Higher Blends Infrastructure Incentive Program (HBIIP) is central to this investment, providing grants to owners of fueling stations and distribution facilities, including marine, rail, and home heating oil sectors. The goal is to enhance the infrastructure needed to support the use of domestic biofuels, a pivotal step in promoting a cleaner energy future.

The projects funded by the HBIIP grants include:

  • Connor’s Service Station in Webster, Wisconsin: Awarded over $445,000 to install two E15 fuel dispensers, two B20 dispensers, and storage tanks for ethanol and biodiesel. This initiative is projected to boost biofuel sales by nearly 224,000 gallons annually.
  • Fleet Fueling of Michigan LLC: Received a $4.2 million grant to upgrade seven fueling stations with 16 E15 dispensers, 16 E85 dispensers, 30 B20 dispensers, and multiple storage tanks for ethanol and biodiesel. The project aims to increase biodiesel sales by 2.5 million gallons each year.
  • NUVU Fuels Florida LLC: Granted $150,000 to install four E85 dispensers and four E15 dispensers at a Sarasota-based station, with an expected increase in ethanol sales by nearly 178,000 gallons annually.
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These investments are set to benefit a range of states, including Arkansas, California, Florida, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia, and Wisconsin.

The USDA’s announcement marks a substantial step forward in leveraging biofuels to support energy sustainability and economic resilience, particularly in rural areas. By fostering the growth of biofuels, the USDA is not only enhancing energy independence but also catalyzing economic development in communities that are pivotal to America’s agricultural framework.

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