USDA to Award $100 Million in Grants for Renewable Fuel Infrastructure


The U.S. Department of Agriculture (USDA) plans to award up to $100 million in competitive grants to expand the sale and use of renewable fuels, including biodiesel. NATSO is currently reviewing the notice and will provide a more in-depth analysis for its members in coming days.

Under the Higher Blends Infrastructure Incentive Program, USDA will award $14 million to expand the infrastructure for higher blends of biodiesel and $86 million for higher blends of ethanol in an effort to increase the sale and use of higher blend renewable fuels.  

The online application system will be available at NATSO members with questions on how to apply are encouraged to contact the Alternative Fuels Council. The Alternative Fuels Council also will be following up with its members with additional information about the grant. The Alternative Fuels Council is specifically designed to assist renewable fuel marketers and blenders with federal regulations and incentive programs.

Specifically, USDA said the program aims to encourage a comprehensive approach to marketing higher blends by sharing the costs relating to building out biofuel-related infrastructure.

Grants can be used to help both transportation fueling and biodiesel distribution facilities convert to higher biodiesel blends by sharing costs related to installing, retrofitting or upgrading fuel storage, dispenser pumps, related equipment and infrastructure.

Grants for up to 50 percent of total eligible project costs, but not more than $5 million, are available to vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.

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