A Major Boost for Clean Energy: USDA Awards $19M in Grants to Expand Biofuel Access in America

The U.S. Department of Agriculture (USDA), led by Secretary Tom Vilsack, has recently announced a major step forward in providing cleaner, more affordable fuel options for Americans. This move involves giving $19 million in grants to businesses in the United States. This funding, which is a part of President Biden’s plan to reduce inflation and invest in America, will help increase the availability of biofuels in 22 states.

Biofuels, particularly ethanol mixed with gasoline, have already been making a positive impact. They've helped bring down fuel costs by about 25%, which is a big deal for everyone who buys gas. This decrease in prices means that in over half the states in the U.S., gas prices are now below $2.99. This price drop is saving the average driver more than $100 each month compared to when prices were at their highest.

The program responsible for these grants is called the Higher Blends Infrastructure Incentive Program (HBIIP). It's been made possible through the funding provided by President Biden’s Inflation Reduction Act. Secretary Vilsack highlighted that this act is a significant opportunity for rural areas to grow in the clean energy sector, benefiting working families, enhancing energy independence, and creating new jobs.

Secretary Vilsack shared this news at the Iowa Renewable Fuels Summit in Altoona, where he was recognized for his contributions to renewable fuels. Through this recent round of grants, businesses in 22 states will receive a total of $19 million to boost access to biofuels made in the U.S. For example, Casey’s is planning to use a $5 million grant to install new fuel dispensers in several states, aiming to increase their biofuel supply significantly. Similarly, Piasa Enterprises in Illinois and AC&T in Maryland are using their grants to enhance their biodiesel and ethanol offerings.

Since the beginning of the Biden-Harris Administration, the USDA has invested over $96 million nationwide in expanding access to biofuels at fueling stations, with a significant portion of this investment in Iowa. The HBIIP offers grants to help fueling stations and distribution facilities increase access to biofuels. This includes funding for equipment like fuel pumps and storage tanks. In June 2023, USDA made a substantial $450 million available for this purpose, and they continue to accept applications for more funding.

This initiative is part of President Biden’s larger agenda to grow the American economy, create jobs, and build a clean-energy economy to address the climate crisis. The Inflation Reduction Act, a key part of this agenda, represents the largest-ever U.S. investment in combating the climate crisis. It supports investments in renewable energy infrastructure and improvements to reduce greenhouse gas emissions.

The USDA under the Biden-Harris Administration focuses on expanding economic opportunities and improving life quality in rural America. This involves supporting various projects from infrastructure improvements to high-speed internet access in rural, Tribal, and high-poverty areas. The USDA's efforts encompass a wide range of activities, from transforming the food system to investing in clean energy and infrastructure in rural America. For more details, you can visit their website.