USDA Awards Grants to 21 States for Biofuel Infrastructure

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U.S. Department of Agriculture (USDA) secretary Tom Vilsack said Sept. 10 that 21 states will receive grants through the agency’s Biofuel Infrastructure Partnership (BIP) to add infrastructure needed to supply more renewable fuel to U.S. drivers. Since inaugurating the program in May, the Agriculture Department’s Farm Service Agency received applications requesting more than $130 million, outpacing the $100 million that is available. With more than a one-to-one match from private and state resources, USDA estimates that BIP grants will support nearly 5000 pumps at more than 1400 fueling stations across the country.

“The quality and geographic diversity of the applicants, backed by supportive state and private partners, demonstrate the strong demand across the country for cleaner, more affordable fuel,” Vilsack said. “The Biofuel Infrastructure Partnership is one approach USDA is using to aggressively pursue investments in American-grown renewable energy to create new markets for U.S. farmers and ranchers, help Americans save money on their energy bills, support America’s clean-energy economy, cut carbon pollution, and reduce dependence on foreign oil and costly fossil fuels.”

USDA comments that a typical gasoline pump delivers fuel with 10% ethanol, which limits the amount of renewable energy most consumers can purchase at the pump. The agency estimates that its BIP spending will more than double the number of stations that offer intermediate blends of ethanol, mainly E15 fuel levels, nationwide.

Through BIP, USDA will award competitive grants, matched by states, to expand the infrastructure for distribution of higher blends of ethanol. BIP funds from the Commodity Credit Corp. must be used to pay a portion of the costs related to the installation of fuel pumps and related infrastructure dedicated to the distribution of higher ethanol blends, for example E15 and E85, at vehicle fueling locations. The matching contributions may be used for these items or for related costs such as additional infrastructure to support pumps, marketing, education, data collection, program evaluation, and administrative costs.

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