USDA awards $43 million in HBIIP grants, $194 million in REAP funding

USDA announced April 23 that it is awarding more than $43 million in grants through the Higher Blends Infrastructure Incentive Program to business owners to increase the availability of domestic biofuels in 15 states.

HBIIP provides grants to fueling station and distribution facility owners, including marine, rail and heating-oil facilities, to help expand access to domestic biofuels.

These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks. For example:

• In Pennsylvania, Clyde S. Walton Inc. will use a grant of more than $810,000 to install a 30,000-gallon biodiesel storage tank and loading equipment at its heating-oil distribution facility in Lansdale. This project is expected to increase the amount of biodiesel sold by more than 5 million gallons per year.

• In Kansas, Blue River Valley LLC will use a $3 million grant to rebuild a pair of 2-million-gallon ethanol storage tanks and other equipment at a fuel distribution facility in Potwin. This project is expected to increase the amount of ethanol sold by more than 238 million gallons per year.

• In Minnesota, Twin Cities Auto Repair & Gas will use a $402,000 grant to install four E15 dispensers and two ethanol storage tanks at a fueling station in Burnsville. This project is expected to increase the amount of ethanol sold by 996,000 gallons per year.

USDA is making the HBIIP awards in California, Florida, Illinois, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, New York, Oklahoma, Pennsylvania, South Dakota, Texas and Wisconsin.

Since early 2021, USDA has invested approximately $135 million to increase access to biofuels at fueling stations.

In June 2023, USDA made $450 million available in Inflation Reduction Act funding through the HBIIP to expand the use and availability of higher-blend biofuels.

USDA continues to accept applications for funding to expand access to domestic biofuels.

These grants will support the infrastructure needed to reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure.

Applications are being accepted quarterly through Sept. 30.

In addition, USDA is providing more than $194 million in loans and grants through the Rural Energy for America program to support projects in 35 states and Puerto Rico.

The REAP program helps agricultural producers and rural small business owners expand their use of wind, solar, geothermal and small hydropower energy and make energy-efficiency improvements.

“As we celebrate Earth Day this year, we are excited to partner with hundreds more family farms and small businesses to address the impacts of climate change, grow the economy and keep rural communities throughout the country strong and resilient,” said Torres Small, USDA deputy secretary.

To view the complete list of award recipients covered under the April 23 announcement, click here.