USDA Spending $100 Million To Boost Renewable Fuel Use

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U.S. Department of Agriculture (USDA) secretary Tom Vilsack reports his agency will spend up to $100 million in a biofuels partnership to support infrastructure improvements to make more renewable fuel options available to American consumers. Specifically, USDA will administer competitive grants to match funding for state-led efforts to test and evaluate “innovative and comprehensive” approaches to market higher blends of renewable fuel such as E15 and E85. States able to provide greater than a one-to-one ratio in funding will receive higher consideration.

“American-made, clean energy sources support the environment, reduce our dependence on foreign oil, create jobs, and sustain the economy in rural communities across the country,” Vilsack said. “We are fortunate that our farmers are producing record amounts of feedstock for these fuels. However, a combination of factors, including lower commodity prices and reduced demand for feed as the poultry industry recovers from highly pathogenic avian influenza, are creating uncertainty for America’s corn and soybean producers. With this partnership, USDA is helping to ensure the infrastructure is in place for consumers to access more renewable fuels, expand marketing opportunities for farmers, and grow America’s rural economies.”

USDA notes that higher blends of renewable fuel offer significant potential for increasing their use in the U.S. gasoline pool, but currently the typical gas pump can deliver fuel containing a maximum of 10% ethanol, limiting the amount of renewable energy consumers can use to fuel their vehicles. The partnership is aimed at helping support installation of fuel pumps capable of supplying higher blends by partnering with states to fund public-private enterprises to test approaches to marketing such blends. The spending seeks to double the number of fuel pumps capable of supplying E15 and E85.

Other USDA spending has the agency funding biofuel refineries, including six new facilities in Louisiana, Georgia, Oregon, Nevada, North Carolina, and Iowa, in addition to two existing facilities in New Mexico and Florida. USDA has also partnered with the U.S. Navy and U.S. Department of Energy to accelerate development of drop-in diesel and jet fuel substitutes. USDA has spent $332 million over the past six years to accelerate research on renewable energy.

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