Today, Rep. Cindy Axne (IA-03) applauded USDA for opening up another round of applications to increase the sale and use of biofuels derived from U.S. agricultural products.

USDA is making $100 million of grants available through the Higher Blends Infrastructure Incentive Program (HBIIP). This program increases access to higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers and storage tanks.

“Biofuels reduce our reliance on fossil fuels and give Americans cleaner, more affordable options at the pump while lessening our dependence on foreign gas,” Rep. Axne said. “Expanding the availability of our biofuels will help Iowa’s farmers, biofuels industry, and hardworking Americans who have been seeing soaring gas prices all summer long. I’m glad to see USDA offering more funding to support biofuels, and look forward to seeing this continue. I worked hard to secure $500 million for biofuels infrastructure investments like these in the Inflation Reduction Act.”

Under HBIIP, USDA provides grants to transportation fueling and distribution facilities. These grants lower the out-of-pocket costs for businesses to install and upgrade infrastructure and related equipment.

The $100 million available now will support a variety of fueling operations, including filling stations, convenience stores, and larger retail stores that also sell fuel. The funds will also support fleet facilities including rail and marine, and fuel distribution facilities, such as fuel terminal operations, midstream operations; and/or distribution facilities, as well as home heating oil distribution centers.

The grants will cover up to 50% of total eligible project costs – but not more than $5 million – to help owners of transportation fueling and fuel distribution facilities convert to higher blends of ethanol and biodiesel. These higher-blend fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.

Applications must be submitted by 3:30 p.m. CT Nov. 21, 2022. Visit the HBIIP webpage to learn more, sign up for webinars and apply. 

Background

Rep. Axne has worked to secure significant support for biofuels through the Inflation Reduction Act, including:

• $500 million in funding for the U.S. Department of Agriculture to provide grants to expand biofuel pump infrastructure, upgrade existing tanks and pumps, and increase usage of higher blends of ethanol and biodiesel.
  • That investment matches the amount originally proposed by Axne in her Renewable Fuels Infrastructure Investment and Market Expansion Act, which she introduced in March 2021.
• A three year extension of the biodiesel tax credit, which was set to set to expire at the end of 2022 after being revived in December 2019 by Rep. Axne and her colleagues.
  • In May 2021, Rep. Axne introduced bipartisan legislation to extend the biodiesel tax credit for three years.
• A new tax credit to support the creation and usage of Sustainable Aviation Fuel, opening a new and growing market for Iowa biofuels and biodiesel.

Original source can be found here.