USDA Announces Incentive Program to Increase Ethanol Availability

SIOUX FALLS, SD – Last week, USDA announced further information and details surrounding the application process for its Higher Blends Infrastructure Incentive Program (HBIIP), which makes available up to $100 million in competitive grants for activities designed to expand the sale and use of renewable fuels. The American Coalition for Ethanol (ACE) is focusing its market development efforts, including the fuel-marketer-focused website www.flexfuelforward.com, on ensuring fuel marketers know about the funding and receive any assistance they need to participate. In particular, the program sets aside $86 million for higher blends of ethanol. A high percentage of existing stations could add E15 using mostly existing equipment, and USDA is structuring these grants so all fuel retailers — including single store and small chain owners — can receive assistance whether they need to perform simple conversions, upgrades or new infrastructure. Owners who act now can use the program and the ACE says they stand ready to help fuel marketers complete the application process and make the switch.