USDA Announces $239 Million to Boost Access to U.S. Biofuels

On October 29, 2024, the U.S. Department of Agriculture (USDA) announced a significant step forward in the nation’s energy landscape, awarding $39 million in grants aimed at increasing access to domestic biofuels across 18 states. This funding is directed at U.S. business owners to help them expand biofuel availability, providing consumers with cleaner and more affordable fuel options while reducing greenhouse gas emissions. To further support these efforts, USDA will make an additional $200 million available through the newly launched Biobased Market Access and Development Grants, funded by the Commodity Credit Corporation (CCC). Together, these initiatives are part of President Biden’s broader Investing in America agenda, which focuses on advancing sustainable energy infrastructure. The projects are funded through resources from both the CCC and the Inflation Reduction Act.

The $39 million in grants comes through USDA’s Higher Blends Infrastructure Incentive Program (HBIIP), a key element of its strategy to expand biofuel access. HBIIP grants are awarded to owners of fueling stations and distribution facilities, including those serving marine, rail, and home heating oil. These grants will help business owners install and upgrade essential infrastructure, such as fuel pumps, dispensers, and storage tanks, that are compatible with higher biofuel blends. By expanding this infrastructure, USDA aims to enhance the accessibility and convenience of biofuels for consumers, encouraging wider adoption of renewable energy and reducing reliance on traditional fossil fuels. In addition to enhancing energy independence, these upgrades will create revenue opportunities for American businesses and bring well-paying jobs to rural communities, where much of the biofuel production and distribution infrastructure is located.

The $200 million Biobased Market Access and Development Grants will be made available through previously transferred CCC funds. The creation of this grant program aims to address a critical need in the bioeconomy by bridging the gap between innovative pilot-scale demonstrations and commercial viability for biobased products. According to USDA, the program is designed to support cutting-edge biobased technologies, helping companies advance from experimental stages to full-scale commercial operations. This funding will target applicants who are already part of USDA’s Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program, which seeks to support the development of renewable chemicals and advanced biobased manufacturing practices. The Biobased Market Access and Development Program will be funded by reallocating unobligated CCC funds from 2020, providing a new lifeline for companies pursuing sustainable energy solutions.

The combined $239 million investment highlights USDA’s commitment to transforming the energy landscape by making biofuels more accessible and supporting the growth of biobased product markets. These initiatives are expected to not only foster the development of a cleaner, more sustainable energy economy but also contribute to economic growth, particularly in rural areas. USDA’s efforts reflect a broader national strategy to reduce carbon emissions and drive forward the bioeconomy, positioning domestic biofuels as an integral component of the United States' energy mix. By enhancing the infrastructure for biofuel distribution and supporting innovative biobased solutions, USDA is working to meet the nation's energy needs while promoting environmental stewardship and economic resilience. These initiatives are expected to reduce the carbon footprint of America’s energy sector, bolster energy independence, and support new job creation across the country.