Biden-Harris Administration Announces $239 Million to Increase Access to Clean, Affordable Domestic Biofuels as Part of Investing in America Agenda

Press Release

Release No. 0214.24

WASHINGTON, Oct. 29, 2024 - U.S. Department of Agriculture (USDA) Deputy Secretary Xochitl Torres Small today announced that USDA is awarding $39 million in grants to U.S. business owners to increase the availability of domestic biofuels in 18 states and give Americans cleaner, more affordable fuel options. Deputy Secretary Torres Small also announced the Department will make $200 million available through the new Biobased Market Access and Development Grants made possible by Commodity Credit Corporation (CCC) funds.

The awards and funding announced today are made possible through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Biobased Market Access and Development Program as part of President Biden's Investing in America agenda with funding from CCC and 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." Deputy Secretary Torres Small said. "Through President Biden's Investing in America agenda, we are partnering with rural agricultural producers to expand clean energy and build an economy that benefits working families and small businesses while combatting climate change."

More Access to Higher-Blends Fuels at the Pump

USDA provides HBIIP grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, a clean and affordable source of energy.

Through the investments announced today, the Department is expanding the availability of homegrown biofuels that will strengthen energy independence, create new revenue for American businesses and bring good-paying jobs to rural communities.

The projects will help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks.

For example:

• Connor's Service Station in Webster, Wisconsin 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.

The grants announced today are funding projects in Arkansas, California, Florida, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.

Since the start of the Biden-Harris Administration, USDA has invested more than $253 million nationwide through more than 300 awards to increase access to biofuels across the nation. Almost $192 million of that funding invested in 267 projects comes from President Biden's Inflation Reduction Act.

For more information, visit the HBIIP webpage.

Biobased Market Development and Access Grant Program

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.

HBIIP

In June 2023, USDA made $450 million available in Inflation Reduction Act funding through HBIIP to expand the use and availability of higher-blend biofuels. That same month, USDA also announced the first round of Inflation Reduction Act-funded HBIIP awardees.

The Biden-Harris Administration championed the Inflation Reduction Act, the nation's largest-ever investment in combatting the climate crisis, a key pillar of the Investing in America agenda. Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America.

The Act provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions. For more information on the Inflation Reduction Act, visit: www.rd.usda.gov/inflation-reduction-act.

USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To learn more, visit www.usda.gov. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America's food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

To subscribe to USDA Rural Development updates, visit the GovDelivery subscriber page.

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