Agriculture Department making up to $500 million available to support ethanol, biodiesel

The Department of Agriculture’s Higher Blend Infrastructure Incentive Program (HBIIA) seeks to boost adoption of ethanol and biodiesel blends by supporting the expansion of infrastructure for renewable fuels derived from U.S. agricultural products.

The Department of Agriculture (DOA) released a Notice of Funding (NOFO) for $500 million, released quarterly through Sept. 30, 2024. The funds come from the Inflation Reduction Act (IRA) and can be used to support fueling stations, convenience stores, fleet facilities and terminal operations for blends such as E15 or higher ethanol and B20 or higher biodiesel, sharing costs and encouraging sustainable fuel options.

Entities eligible to apply include transportation fueling facilities, including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities and similar entities with capital investments. Additionally, fuel-distribution facilities such as terminal operations, depots, midstream partners and equivalent operations are also eligible.

Prior awards include $3.5 million for Tristar FLC Inc. to build a high-efficiency transload facility in Fontana, California, which is expected to increase biodiesel sales by 24 million gallons annually. Piasa Enterprises Inc. received a $200,000 grant to install two 30,000-gallon insulated biodiesel storage tanks in Hartford, Illinois, anticipating an annual sales increase of 2 million gallons.

The next awards close June 30, 2024, and September 30, 2024.