The U.S. Department of Agriculture (USDA) announced a significant funding initiative aimed at increasing the availability of domestic biofuels, as part of the Biden-Harris Administration's Investing in America agenda. Deputy Secretary Xochitl Torres Small revealed that $39 million in grants will be distributed to business owners across 18 states to provide cleaner and more affordable fuel options. An additional $200 million will be allocated through new Biobased Market Access and Development Grants funded by the Commodity Credit Corporation.
This funding is made possible through programs such as the Higher Blends Infrastructure Incentive Program (HBIIP) and aligns with President Biden’s Inflation Reduction Act. "By increasing the supply of biofuels made here in the U.S., we are helping to lower costs for American families, strengthening our energy independence, creating new streams of income for agricultural producers and bringing good-paying jobs to people in rural communities," stated Deputy Secretary Torres Small.
The USDA provides HBIIP grants to various fueling station and distribution facility owners, aiming to expand access to domestic biofuels. This includes installations like fuel pumps, dispensers, and storage tanks. For instance, Connor’s Service Station in Wisconsin received over $445,000 for new ethanol and biodiesel infrastructure, expecting an increase in biofuel sales by nearly 224,000 gallons annually. Similarly, Fleet Fueling of Michigan LLC plans substantial installations with their $4.2 million grant.
Since the beginning of the Biden-Harris Administration, over $253 million has been invested nationwide to enhance biofuel access. A considerable portion comes from President Biden’s Inflation Reduction Act.
Additionally, USDA is introducing a Biobased Product Market Development and Access Grant Program using CCC funds from 2020. This program supports innovative biobased technologies moving towards commercial viability.
In June 2023, USDA had already made available $450 million through HBIIP under the Inflation Reduction Act to promote higher-blend biofuels usage. The Administration's commitment through this Act is pivotal in addressing climate change challenges while fostering renewable energy infrastructure investments.
For further details on these initiatives or other USDA Rural Development projects, interested parties can visit relevant USDA websites or subscribe for updates via GovDelivery.
