USDA Announces Funding for Homegrown Biofuels in Missouri

Funds Are Being Provided by President Biden’s Inflation Reduction Act; USDA Awards First Round of Funding to 59 Projects Nationwide

COLUMBIA, Mo., June 26, 2023 – U.S. Department of Agriculture (USDA) Rural Development State Director Kyle Wilkens today announced more than $825,000 in infrastructure investments to increase the availability of domestic biofuels and give Americans additional cleaner fuel options at the pump. Investments are made possible through President Biden’s Inflation Reduction Act.

“Corn is a significant crop in Missouri. Renewable fuels, such as corn ethanol, are affordable for consumers and serve as a critical pathway for agriculture and farmers in Missouri." Wilken said. "The more energy independent we are throughout rural America, including the most remote areas of our state, the more we can increase new market opportunities, good-paying jobs, and economic benefits. Not only do investments like the ones being announced today promote bottom line savings for business, consumers, and farmers, but also a cleaner environment for future generations.”

Elliott Oil Company will use a $357,750 grant to replace four E15 dispensers, four B20 dispensers, one ethanol storage tank, and one biodiesel storage tank at a fueling station located in Lancaster, Missouri. This project is expected to increase annual sales of biofuels by approximately 877,500 gallons.

Rapid Robert’s Inc. will use a $183,000 grant to replace four E15 dispensers, four E85 dispensers, and one ethanol storage tank at a fueling station in Springfield. The project is expected to increase annual sales of ethanol by more than 770,400 gallons.

Fuel Marketing Corporation will use a $284,480 grant to install a 420,000-gallon ethanol storage tank and associated equipment at a fuel distribution facility in Miller. This project is expected to increase annual sales of ethanol by nearly three million gallons.

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.

Background: Higher Blends Infrastructure Incentive Program

In December 2022, USDA made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP).

Today’s investments are in coordination with U.S. Ag Secretary Vilsack’s recent announcement of the first awardees of 59 infrastructure projects that will receive a total of $25 million. The complete list of awardees is available here. Additional awards will be announced in the coming weeks.

The Department 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.

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.

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.

Grants 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 starting July 1. 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 Grants.gov. Those interested may also register to attend a webinar scheduled for July 6 at 3:30 p.m. ET.

Background: Inflation Reduction Act

This announcement is part of President Biden’s Investing in America agenda to grow the American economy from the bottom up and the middle out by rebuilding our nation’s infrastructure, driving over $470 billion in private-sector manufacturing investments, creating good-paying jobs, and building a clean-energy economy to tackle the climate crisis and make our communities more resilient.

The Biden-Harris Administration championed the Inflation Reduction Act to help provide new funding and unprecedented incentives to expand clean energy, transform rural power production, create jobs and spur economic growth. It is the largest single investment in rural electrification since the Rural Electrification Act of 1936.

Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America.

It provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions.

For more information on the Inflation Reduction Act, visit: https://www.rd.usda.gov/inflation-reduction-act.

Contact USDA Rural Development

Information on programs available through USDA Rural Development is available by visiting www.rd.usda.gov/mo, by calling (573) 876-0976, or by emailing RDMissouri@usda.gov. Stay current by following @RD_Missouri on Twitter.