Wednesday, February 21, 2024

USDA announces state finalists for Biofuel Infrastructure Partnership

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CHAMPAIGN, Ill. — Agriculture Secretary Tom Vilsack has announced that 21 states will receive grants through the Biofuel Infrastructure Partnership (BIP) to add infrastructure needed to supply more renewable fuel to America’s drivers.

With a more than 1:1 match from private and state resources, USDA estimates that the BIP grants will support nearly 5,000 pumps at over 1,400 fueling stations across the country.

“The quality and geographic diversity of the applications, backed by supportive state and private partners, demonstrate the strong demand across the country for cleaner, more affordable fuel,” said Vilsack. “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.”

A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy most consumers can purchase at the pump. USDA estimates that this investment 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 Corporation 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.

The preliminary list of state finalists and estimated pumps include: Colorado 28, Florida 892, Illinois 428, Indiana 110, Iowa 187, Kansas 174, Louisiana 110, Michigan 89, Minnesota 620, Missouri 171, Nebraska 80, North Carolina 190, North Dakota 90, Ohio 148, Pennsylvania 308, South Dakota 74, Texas 763, Virginia-Maryland 191, West Virginia 107 and Wisconsin 120. Funding amounts for each state will be announced at a later date.

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