USDA is accepting applications for $100 million in grants to increase the sale and use of biofuels derived from U.S. agricultural products. Applications must be submitted by 4:30 p.m. ET Nov. 21, 2022. The $100 million will support a variety of fueling operations, including home heating oil distribution centers.
The National Energy & Fuels Institute said in September that it had advocated for nine heating fuel suppliers from six Northeast states that already received a combined $11 million.
USDA is making the funding available through the Higher Blends Infrastructure Incentive Program (HBIIP). This program seeks to market higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers and storage tanks.
The grants will cover up to 50% of total eligible project costs – but not more than $5 million – to help owners of transportation fueling and fuel distribution facilities convert to higher blends of ethanol and biodiesel. These higher-blend fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.