USDA Secretary Tom Vilsack announced plans to invest $500 million from the Inflation Reduction Act for increasing the availability of domestic biofuels, providing cleaner fuel options at the pump. Vilsack announced the first 59 infrastructure projects receiving a total of $25 million. In July, USDA will accept applications for $450 million in Higher Blends Infrastructure Incentive Program (HBIIP) grants to further support biofuel-related infrastructure. Three awardees were named today, including projects in Iowa, Minnesota and New York.
The HBIIP seeks to increase higher-blend ethanol and biodiesel availability through funding shared costs of building or retrofitting biofuel infrastructure. Grants will cover up to 75% or $5 million of total project costs for higher-blend fuels.
The $450 million in new funds will be available starting July 1, distributed across different types of fuel operations each quarter. There will be five application windows for HBIIP between July 1, 2023, and September 30, 2024, with a sixth application window if funding remains. Read more from Pro Farmer.
