USDA offers grants for biodiesel infrastructure

Written on: September 29, 2023 by ICM

The U.S. Department of Agriculture (USDA) is now accepting applications for grants through the Higher Blends Infrastructure Incentive Program (HBIIP) to support investments in biodiesel infrastructure. These grants will cover up to 75% or $5 million of total project costs to help facilities convert to higher-blend fuels. The fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.

The $450 million in new funds will be available quarterly. Each quarter, $90 million will be available to support a variety of fueling operations:

• Approximately $67.5 million will be made available to transportation fueling facilities, including fueling stations; convenience stores; larger retail stores that also sell fuel; and transportation, freight, rail and marine fleet facilities.
• Approximately $18 million will be available to fuel distribution facilities, including terminal operations, depots and midstream operations.
• Up to $4.5 million will be made available to home heating oil distribution facilities.

There will be five application windows for HBIIP between July 1, 2023, and Sept. 30, 2024. A sixth application window will be opened if funding has not been exhausted.

For more information, visit the HBIIP webpage, the Federal Register or