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USDA High Blend Infrastructure Incentive Program Details Emerging – Act Now

 

FUELIowa is continuing to gather information on the USDA’s High Blend Infrastructure Incentive Program (HBIIP) to best prepare members to take advantage of this targeted infrastructure investment program. The USDA HBIIP is designed to provide $100 million in infrastructure grants to retail motor fuel outlets to promote the sale of higher blend biofuels like E15 and B6.  Forty percent of the $100 million allocated to the HBIIP by USDA is set aside for retail owners operating ten or fewer locations.  $86 million will be allocated toward ethanol related projects and $14 million toward biodiesel projects.

 

Eligible projects include projects at both new and existing retail motor fuel facilities where UST system upgrades are necessary to accommodate the sales of high blend biofuels. New facilities (those facilities being built during the grant period) are excluded from including USTs in their project application. In its Notice of Funding Availability (NOFA), USDA states that all below-grade USTs are compatible with high blend biofuels and providing cost-share funding for tanks installed at new facilities does not expand the market for high blend biofuels and the tanks are therefore not eligible for funding.  At existing facilities, the USDA recognizes the need to upgrade below-grade system components and therefore, existing facilities may include both below-grade and above-grade system components in a cost-share grant application.

 

An applicant seeking cost-share grant funding at multiple locations will do so in one single application.  The maximum cost-share award under the USDA program is a 50 percent cost-share with a per applicant cap of $5 million.  Below-grade UST system components including tanks, lines, sumps, release detection equipment, etc.. are eligible for a 25 percent cost-share with a cap of $1.25 million. An eligible applicant may use up to $1.25 million of the $5 million per applicant cap on below-grade UST system equipment.  Applications are expected to be released as early as May 15. The USDA will be hosting a series of webinars on May 12, May 19, and May 26. FUELIowa members may register here.

 

Federally funded grant programs require a thorough application process, including environmental site review.  FUELIowa is here to assist members with the application process. Through our strong network of Associate Members, FUELIowa is well positioned to provide you with the resources and assistance you will need to streamline the application process.  Once the application is released, applicants will have ninety-days to submit a completed application.  At the close of the application period, applications will be scored and prioritized before awards are granted.  Please contact John Maynes (605-651-3223, john@fueliowa.com) in the FUELIowa office with questions about this cost-share opportunity through USDA.







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