With several upcoming grant opportunities, now is a great time for retail fuel locations to look into adding more ethanol blends for customers. That’s good news for fuel retailers and consumers in Minnesota!
Last month, the USDA announced that they will make $100 million available for biofuel infrastructure grants. This funding may look like the Higher Blends Infrastructure Incentive Program (HBIIP) grants the USDA awarded during two rounds in recent years. While there are no details on when the grant application window opens, we will keep you up to date when we know more.
HBIIP was established to “significantly increase the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.” This USDA funding can be used for offering ethanol blends at 15% or above and B20 biodiesel blends.
In the past two HBIIP rounds, those who can apply included fueling stations, fleet facilities and similar entities, and fuel distribution facilities such as terminal operations and depots.
Upcoming Minnesota Program
Closer to home, Minnesota can also expect a state program to open this winter for retailer ethanol infrastructure. In April 2021, Governor Walz highlighted the biofuels infrastructure budget proposal at the Holiday Stationstore #3829 in New Hope. The biofuels infrastructure program will dedicate $2 million per year, as part of the state’s biennial budget passed with bipartisan support.
To top it off, the Minnesota Corn Research and Promotion Council and Minnesota Corn Growers Association announced a commitment of an additional $1 million to expand access to higher blends of ethanol. This contribution will be blended with the state’s biofuels infrastructure grant program (see what we did there?) and managed by the Minnesota Department of Agriculture.
Bipartisan Infrastructure Law
And if neither the next HBIIP or Minnesota programs work for your retail location, there’s another federal opportunity coming. Funding support for biofuel upgrades will become available later in 2022 under the Bipartisan Infrastructure Law recently passed by Congress and signed by President Biden. Expect details later this year.
These infrastructure programs are key to increasing the use of cleaner-burning biofuels throughout Minnesota and the country. Upgrading and updating fueling infrastructure can be costly, and a large hurdle for retailers. Grants provided will help our local small businesses and all Minnesotans as we transition to renewable fuels.
While we wait for application periods to open up, now is the time for station owners to talk with equipment vendors and us to get prepared. If you are a fuel retailer and interested in learning more about these biofuel infrastructure grants, reach out to us today!