$100 Million Grant to Renewable Fuels Will Bring ‘New Wave of Growth’
Fuel markets began a downward trajectory in late June, with the AAA reporting the U.S.’s average price for regular gas on Tuesday is $3.83, down 49¢ from July.
While fuel prices moved at a rapid pace in 2022, initiatives to alleviate pump prices haven’t moved as fast. One program, however, was finally given the spotlight this week.
The Federal Register published a document on Tuesday that opened the application window for roughly $100 million in grants to “expand” the sale and use of renewable fuels within the USDA’s Higher Blends Infrastructure Incentive Program (HBIIP).
Renewable fuel distribution facilities can now apply for the HBIIP cost-share grants that will aid in converting to higher-blends of:
1. Ethanol—greater than 10%
2. Biodiesel—greater than 5%
Tom Vilsack, USDA secretary, says the funding will strengthen an “important” industry tool to minimize our reliance on other countries.
“Biofuels are homegrown fuels,” Vilsack said. “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.”
Will the USDA Funds Help?
While HBIIP has a large price tag, will it have an impact? Emily Skor, Growth Energy CEO, says she’s seen fuel grants benefit the renewable industry firsthand.
“We have heard countless success stories from our retail partners about how HBIIP grants have helped them expand options at the pump and bring cleaner, more affordable options to drivers across the nation,” she says. “Today’s announcement reaffirms USDA’s commitment to ensuring a new wave of growth for higher biofuel blends…”
These funds—separate from the $500 million recently enacted through the Inflation Reduction Act—will be used for facility installation, retrofitting and pump upgrades, along with new equipment and buildings.
HBIIP applications will be accepted now through Nov. 21.
More on renewable fuels:
Will the IRA's Biofuel Provisions Ease Pump Prices? Sen. Ernst Isn't Convinced
What's Ag's Stake in the Senate-Passed Inflation Reduction Act?
New Legislation Could Put E30 on a Pump Near You
