Biden Administration to award more than $800M to spur development and adoption of homegrown biofuels
The Biden Administration announced several steps to spur the development and adoption of homegrown biofuels.
$700 million for biofuels producers: As part of the Pandemic Assistance for Producers initiative, the US Department of Agriculture (USDA) will provide up to $700 million in funding through a new Biofuel Producer Program. The Program will support agricultural producers that rely on biofuels producers as a market for their agricultural products. By making payments to producers of biofuels, the funding will help maintain a viable and significant market for such agricultural products. Producers can expect awards before the end of April.
$100 million for biofuels infrastructure: USDA announced $100 million in new funding for grants for biofuels infrastructure to make it easier for gas stations to sell and to significantly increase the use of higher blends of bioethanol and biodiesel at the pump. The funding will provide grants to refueling and distribution facilities for the cost of installation, retrofitting or otherwise upgrading of infrastructure required at a location to ensure the environmentally safe availability of fuel containing ethanol blends of E15 and greater or fuel containing biodiesel blends B-20 and greater. USDA will also make funding available to support biofuels for railways as a means of assisting with supply chains and helping to reduce costs for consumer goods and transportation.
$5.6 million for infrastructure for renewable fuels through the Higher Blends Infrastructure Incentive Program: To expand the infrastructure for renewable fuels derived from US agricultural products, USDA is announcing $5.6 million in grants through the Higher Blends Infrastructure Incentive Program. The purpose of the program is to significantly increase the sales and use of higher blends of ethanol and biodiesel. The awards being announced will support 9 projects in 7 states.
For example, in Illinois, Power Mart Express Corp., DBA PME, is receiving a $2.9-million grant to increase ethanol sales by 17.5 million gallons per year. This project will replace 293 dispensers and 30 storage tanks at 15 fueling stations in Chicago, Maywood, Cicero, Des Plaines, and Wilmington.
Spurring a new market in sustainable aviation fuels: USDA is partnering across the federal government to advance the use of cleaner and more sustainable fuels in American transportation and investing billions of dollars in research and agricultural activities to improve aircraft fuel efficiency. Steps include:
A new Sustainable Aviation Fuel Grand Challenge to inspire the increase in the production of sustainable aviation fuels to at least 3 billion gallons per year by 2030;
New and ongoing funding opportunities to support sustainable aviation fuel projects and fuel producers totaling up to $4.3 billion; and
An increase in R&D activities to demonstrate new technologies that can achieve at least a 30% improvement in aircraft fuel efficiency.
Expanding use of canola oil: The US Environmental Protection Agency (EPA) is also announcing efforts to expand supply and choices for other forms of fuel, such as diesel and jet fuel. The Agency is proposing a new approval for canola oil that will add new pathways for fuels to participate in the Renewable Fuel Standard program to provide renewable diesel, jet fuel and other fuels.