Biden Administration Announces $500 Million in Funding for U.S. Biofuel Infrastructure

U.S. Department of Agriculture (USDA) Rural Development California State Director Maria Gallegos Herrera has announced that USDA plans to invest up to $500 million from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and give Americans additional cleaner fuel options at the pump.

This week Agriculture Secretary Tom Vilsack announced the first awardees of 59 infrastructure projects that will receive a total of $25 million through the Higher Blends Infrastructure Incentive Program (HBIIP). The list includes 22 awards in and affecting California.

“A critical part of the Inflation Reduction Act is expanding clean energy and lowering costs for Californians,” Gallegos Herrera said. “Investing in American biofuels strengthens our energy independence, and we are so proud to support California’s producers who support this effort and strengthen our national economy.”  

The awards in California include a $1.2 million investment for Satnam Petroleum Inc. to install 11 E85 dispensers, four B20 dispensers, two ethanol storage tanks, and two biodiesel storage tanks at two fueling stations located in San Jose. This project projects to increase the annual sales of biofuels by nearly 238,000 gallons.   

The full list of awardees, including those in California, is available here. In December 2022, USDA made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through HBIIP.

In July the Department will begin accepting applications for $450 million in grants through HBIIP. These grants will continue to support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers, and storage tanks.

Additional awards will be announced in the coming weeks.

In addition to today’s announcements, EPA recently finalized the highest-ever biofuel production targets in our history, with growth in cellulosic biofuel, biomass-based diesel, advanced biofuel, and non-cellulosic advanced categories. This is a win for energy independence and for our rural economy, delivering stability and growth in this market for years to come.

HBIIP seeks to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products by sharing the costs to build and retrofit biofuel-related infrastructure.

For more information, visit the HBIIP webpage, the Federal Register or Grants.gov. Those interested may also register to attend a webinar scheduled for July 6 at 3:30 p.m. ET.

Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit www.rd.usda.gov/ca. To subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.