Higher Blends Infrastructure Incentive Program


The Higher Blends Infrastructure Incentive Program (HBIIP) is a new program that will expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels. To accompany the program, a new online grant application system has been developed to be used in applying for participation in the HBIIP grant program. The HBIIP grant program includes infrastructure projects for fueling station companies and fuel distribution facility companies.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Rural Business-Cooperative Service, Department of Agriculture
Type(s) of Assistance Offered
A - Formula Grants
Program Accomplishments
Not applicable.
Conservation, and Energy Act of 2008, and the Agricultural Act of 2014, Public Law 113-79, Title IX, Section 9007, 7 U,S,C, 8107., Title Conservation and Energy Act 2014, Section 9007, Public Law 79-113, 7 U.S.C. 8107
This also includes Commodity Credit Corporation (CCC) CCC is an agency and instrumentality of the United States within the Department of Agriculture and operates under the supervision of the Secretary of Agriculture. Among the activities that section 5 of the CCC Charter Act authorizes CCC to undertake are actions to: • Make available materials and facilities required in connection with the production and marketing of agricultural commodities (other than tobacco) and • Increase the domestic consumption of agricultural commodities (other than tobacco) by expanding or aiding in the expansion of domestic markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities. Under this authority, CCC is making available up to $100 million in the form of cost-share grants to eligible entities to assist with the implementation of activities to expand the infrastructure for renewable fuels derived from agricultural products produced in the United States. HBIIP will be administered on behalf of CCC under the general supervision of RBCS.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Owners of transportation fueling and fuel distribution facilities located in the United States and its territories may apply for this program. Eligible entities would include--fueling stations, convenience stores, hypermarket retailer fueling stations, fleet facilities, and similar entities with equivalent capital investments, as well as fuel/biodiesel terminal operations, midstream partners, and heating oil distribution facilities or equivalent entities. Applicants must include all proposed activity under a single application.
Beneficiary Eligibility
Not applicable.
An eligible project must conform to all applicable Federal, State, Tribal and local regulatory requirements pertaining to: (1) Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST), 40 CFR parts 280 and 281; (2) Regulation of Fuels and Fuel Additives, 40 CFR part 80; (3) Occupational Safety and Health Standards Subpart H--Hazardous Start Printed Page 26659Materials Section 106--Flammable Liquids, 29 CFR 1910.106; (4) Safety and Health Regulations for Construction Subpart F--Fire Protection and Prevention Section 152--Flammable Liquids, 29 CFR 1926.152; and (5) Automotive Fuel Ratings, Certification, and Posting, 16 CFR part 306.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Award Procedure
HBIIP grants will be administered in accordance with Departmental Regulations, and as otherwise specified in this Notice. Applicants selected for funding, will receive a signed notice of Federal award containing instructions on requirements necessary to proceed with execution and performance of the award. Applicants not selected for funding will be notified in writing and informed of any review and appeal rights. Awards to successfully appealed applications will be limited to available funding.
Approval/Disapproval Decision Time
From 60 to 90 days.
From 30 to 60 days. Appeal process will be outlined on time of denial.
One time Grant opportunity.
How are proposals selected?
Not applicable.
How may assistance be used?
Under the HBIIP, funds will be awarded to assist transportation fueling and fuel distribution facilities to convert their facilities through upgrade or installation of equipment required to ensure all equipment is fully compatible with higher blends of ethanol (i.e., greater than 10 percent ethanol) and biodiesel (greater than 5 percent biodiesel) (HB fuel). The program will share the costs related to the upgrading of fuel dispensers (gas and diesel pumps) and attached equipment, underground storage tank system components (which includes but is not limited to tanks, pumps, ancillary equipment, lines, gaskets, and sealants), and other infrastructure required at a location to ensure the environmentally safe availability of fuel containing ethanol blends greater than 10 percent or fuel containing biodiesel blends greater than 5 percent.
What are the requirements after being awarded this opportunity?
Not applicable.
Not applicable.
Owners or operators who store regulated substances that contain more than 20 percent biodiesel or more than 10 percent ethanol, such as 15 percent ethanol or E15, must notify their implementing agency 30 days before storing the fuel. Owners and operators must also keep records demonstrating that their UST system is compatible with the substance stored. Point of sales information records for a period of 5 years will need to remain available following the completion of construction that is to occur within 18 months following the full execution of the grant agreement.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching is . 10%. Those project funds required to receive an HBIIP grant. The applicant is responsible for securing the remainder of the total eligible project costs not covered by grant funds. Matching funds are comprised of eligible in-kind contributions from third parties and/or cash. In-kind contributions by the applicant cannot be used to meet the matching fund requirement. Written commitments for matching funds (e.g., Letters of Commitment and bank statements) must be submitted with the Certification of Matching Funds when the application is submitted. Funds provided by the applicant in excess of matching funds are not matching funds. Unless authorized by statute, other Federal grant funds cannot be used to meet a matching funds requirement. Passive third-party equity contributions are acceptable for HBIIP projects, including equity raised from the sale of Federal tax credits. In the event of ineligible, overstated, or otherwise unsubstantiated claims in the Certification of Matching Funds, the Agency reserves the right to adjust an application's grant request such that it is commensurate with eligible/actual Matching Funds, or take otherwise action as deemed appropriate. Up to 10 percent of an applicant's Matching Funds requirement (up to five percent of total project costs) may be used to pay consumer education and/or marketing and/or signage related expenses. HBIIP grant funds awarded to transportation fueling stations are intended to assist with converting those facilities to ensure full compatibility with HB fuel through upgrade or installation of fuel dispensers, related equipment, and infrastructure. And while the contributions of consumer education and/or marketing and/or signage toward a fuel station's fuel sales are well recognized, a very tall sign to display fuel prices does not in any way assist a facility with higher blends compatibility. Therefore, the Agency determined that while HBIIP grant funds may not be used for consumer education and/or marketing and/or signage,

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Point of sales information records for a period of 5 years will need to remain available following the completion of construction that is to occur within 18 months following the full execution of the grant agreement. Comply per grant agreement if awarded. Method of awarding/releasing assistance: Lump.
Who do I contact about this opportunity?
Regional or Local Office
None/Not specified.
Headquarters Office
Jeff Carpenter
1400 Independence Ave
Washington, DC 20410 USA
Phone: 402-318-8195
Website Address
Financial Information
Account Identification
(Formula Grants) FY 22$131,577,523.00; FY 23 est $124,185,309.00; FY 24 est $500,000,000.00; FY 21$29,820,906.00; FY 20$100,000,000.00; FY 19 Estimate Not Available - Program has been allocated a total of $100,000,000 and available until funds are depleted. No other funds will be provided.
Range and Average of Financial Assistance
It is anticipated that awards and selections will occur in fiscal year 2020
Regulations, Guidelines and Literature
The Notice of Funds Availability published May 5, 2020 Federal Register, Vol. 85; No. 87 (85 FR 26656 - 26665). Further information is https://www.rd.usda.gov/hbiip .


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