The government will pay up to half of the cost of installing pumps, tanks and other equipment at gas stations and other retailers that want to sell higher blends of biofuels, said Agriculture Secretary Tom Vilsack on Tuesday. Projects would receive cost-share grants drawn from $100 million available through the Higher Blends Infrastructure Incentive Program (HBIPP).
“Biofuels are home-grown fuels,” said Vilsack. “Expanding the availability of higher-blend fuels is a win for American farmers, the rural economy and hard-working Americans who pay the price here at home when we depend on volatile fuel sources overseas.”
HBIPP was created as an indirect way to increase consumption of biofuels. Applications for a share of the $100 million in funds were due on Nov 21. The maximum grant per project will be $5 million.
An additional $500 million to increase sales of agricultural commodity-based fuels was included in the recently enacted climate, healthcare and tax law.