Agency: Department of Agriculture-Rural Business-Cooperative Service
Description:
Competitive grants to transportation fueling facilities and fuel distribution facilities to increase the sale and use of higher blend biofuels – blends greater than 10% for ethanol and 5% for biodiesel – through infrastructure improvements for blending, storing, supplying, or distributing biofuels.
Bill Section:
22003
US Code:
7 USC 8103
New or Existing:
Existing
Potential Cost:
$500,000,000
Timeline:
FY22-31
Implementation Status/Rulemaking:
In December 2022, USDA made available $50 million in Inflation Reduction Act funding through the Higher Blends Infrastructure Incentive Program (HBIIP). On June 26, 2023, USDA announced the first awardees of 59 infrastructure projects that will receive a total of $25.8 million: Source
On June 28, 2023, USDA published a Notice of Funding Opportunity for the Higher Blends Infrastructure Incentive Program (HBIIP) for Fiscal Years 2023 and 2024, which include the availability of approximately $450 million from the Inflation Reduction Act: Source
The application windows for enrollment in HBIIP will take place quarterly for five quarters, starting July 1, 2023, through September 30, 2024, with the option for a sixth application window if funding has not been exhausted. Each quarter USDA will make available approximately $67.5 million to transportation fueling facilities, $18 million to fuel distribution facilities, and $4.5 million to home heating oil distribution facilities.
On January 11, 2024, USDA announced $19 million in grants awarded under this program: Source
TCS Notes:
The Higher Blends Infrastructure Incentive Program (HBIIP) was created in 2020 when USDA announce the availability of up to $100 million under the program. A second funding window was announced for the program for FY2021, making available the remaining $22 million from the initial funding. In 2022, USDA announced the available of an additional $100 million through the program.
HBIIP is duplicative of other federal programs funding the same types of projects, in addition to the Alternative Fuel Refueling Property credit.