USDA this week announced the awarding of $39 million in grants to increase the availability of domestic biofuels in 18 states, and an allocation making $200 million available through the new Biobased Market Access and Development Grants from Commodity Credit Corporation (CCC) funds.
Deputy Secretary Xochitl Torres Small announced the awards and funding made possible through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Biobased Market Access and Development Program. “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.” Deputy Secretary Torres Small said.
Among the grants announced were nine Iowa fueling locations, which received nearly $3 million to offer consumers higher blends of biofuels like E15 and B20 across the state, according to the Iowa Renewable Fuels Association (IRFA).
“Consumers in Iowa come out winning when Iowa retailers choose to provide a homegrown, cleaner fuel option that leaves extra dollars in their pockets,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “With Iowa’s cutting edge E15 Access Standard taking effect on January 1, 2026, there is plenty of time and resources to help Iowa retailers meet the deadline. The momentum for the USDA grants is rolling and USDA should not hit the brakes now. As congressional funding for HBIIP has run out, IRFA encourages the USDA to use discretionary funds to keep the grant awards going until Congress can refund HBIIP in the next Farm Bill.”
The other states receiving a share of grants were Arkansas, California, Florida, Illinois, Kansas, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.
Some of the projects being funded include:
– Connor’s Service Station in Webster, Wisconsin, which will use a grant of more than $445,000 to install two E15 fuel dispensers, two B20 dispensers, one ethanol storage tank and one biodiesel storage tank. The project is expected to increase the amount of biofuel sold by nearly 224,000 gallons per year.
– Fleet Fueling of Michigan LLC will use a $4.2 million grant to install 16 E15 fuel dispensers, 16 E85 dispensers, 30 B20 dispensers, seven ethanol storage tanks and 14 biodiesel storage tanks at seven fueling stations in Eaton, Ingham and Clinton counties. The company expects that the project will increase the amount of biodiesel sold by 2.5 million gallons per year.
– NUVU Fuels Florida LLC will use a $150,000 grant to install four E85 dispensers and four E15 dispensers at a fueling station in Sarasota. Through this project, the company expects to increase the amount of ethanol sold by nearly 178,000 gallons per year.
USDA will use previously transferred CCC funds to create the Biobased Product Market Development and Access Grant Program to support innovative biobased technologies and bridge the gap between pilot-scale demonstrations and commercial viability. The funding will be available to applicants who have been accepted into the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program (Section 9003), which is administered by Rural Development. The $200 million program is being funded through the reallocation of unobligated CCC funds from 2020.