The U.S. Department of Agriculture has officially begun accepting application for $450 million in grant applications for the Higher Blends Infrastructure Incentive Program (HBIIP).
The funding, which comes the Inflation Reduction Act, will have application windows that run quarterly from July 1, 2023, through Sept. 30, 2024. Approximately $90 million will be made available each quarter to fueling stations, stores and facilities who implement higher ethanol blends such as E15 and higher, and biodiesel blends greater than 5 percent, such as B20. According to USDA, awards to successful applicants will be in the form of cost-share grants for up to 75 percent of total eligible project costs, but not to exceed $5 million, whichever is less.
Ethanol organizations, including the Renewable Fuels Association (RFA) and the American Ethanol Coalition (ACE), have help available for retailers to apply for these grants.
RFA has helped more than 85 companies secure grants in 21 states for almost $68 million in funding, matched by over $217 million in retailer funding for almost $285 million towards higher blend infrastructure. These combined state and federal grant efforts will result in nearly 2,400 dispensers at over 460 locations, according to RFA Director of Market Development Cassie Mullen.
ACE Chief Marketing Officer Ron Lamberty has helped retailers apply for and receive HBIIP grants since the program’s inception and has provided feedback to USDA on challenges experienced by marketers and suggestions to increase participation following each round of awards and for these funds designated for biofuel infrastructure under the IRA. “Even something as simple as the multiple application periods announced today will help marketers who don’t have staff or time to gather information and fill out complicated grant applications. In past rounds, if they weren’t sure they could complete the application by the due date, they couldn’t risk the time. Now they’ll know when another application opens and can plan accordingly,” said Lamberty.