USDA allocating $239 million to increase biofuel access

The U.S. Department of Agriculture is making $239 million in grants available to increase access to cost-saving domestic biofuels across the country.

The USDA is awarding $39 million in grants and will make an additional $200 million available through a new federal program that is now open to applicants.

Funding sources include the Higher Blends Infrastructure Incentive Program and the new Biobased Market Access and Development Program, which is being created from $200 million in unobligated commodity credit corporation funds.

Biofuels are made from organic materials, called biomass. Unlike other renewable energy sources, biomass can be converted directly into liquid fuels to help meet transportation fuel needs. The two most common biofuels used today are ethanol and biodiesel.

“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 says.

HBIIP grants are provided 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.

Fifteen of the 39 grants are going to companies in California. The grants are also funding projects in Arkansas, Florida, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.

HBIIIP awards include:

$5 million to IMTT Holdings to install an above ground ethanol storage tank, an above ground biodiesel storage tank and loading equipment at a facility in Richmond, California. This project expects to increase the amount of biofuel sold by 80.1 million gallons per year.

$4.2 million to Fleet Fueling of Michigan, LLC 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.

$2.63 million to Sheetz to outfit 40 fueling stations located throughout Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia with dispensers, ethanol storage tanks and a biodiesel storage tank. The project expects to increase the sale of ethanol and biodiesel by 31 million gallons per year.

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