Biden Boosts Biofuels. Again.

Uncle Sam is forking over some cold hard cash to pump up biofuels.

Again.

Here’s what’s new: On Tuesday, the USDA announced they would start accepting applications for $100M in new grants to support infrastructure and conversion projects that will increase the use and distribution of higher blend biofuels.

Here’s what’s not: The Biden Administration is all about biofuels. These new funds are in addition to:

• $5.6M in Higher Blends Infrastructure Incentives Program (HBIIP) funds awarded to specific states in April.
• $700M in pandemic relief funding for over 100 biofuel producers announced in June.
• $500M from the recent Inflation Reduction Act that will be directed toward increasing biofuel usage.

Through this new HBIIP round, grantees will enter a cost-share partnership with the USDA as they use grant and company funds to install and retrofit biofuel pumps, dispensers, storage tanks, and blending infrastructure.

So, what’s considered a “higher” blend? We’re glad you asked:

• >10% Ethanol
• >5% Biodiesel

When making the program announcement, Secretary of Agriculture Tom Vilsack touted the program’s climate-smart goals and its benefits to rural communities.

Secretary soundbite: “Biofuels are homegrown fuels. Expanding the availability of higher-blend fuels is a win for American farmers, the rural economy, and hardworking Americans who pay the price here at home when we depend on volatile fuel sources overseas.”

Sign me up: The grants have a $5M maximum and will cover up to 50% of project costs. Companies can apply through November 21, so get ‘em in.