Ethanol Blog: Biofuels to Receive $537 Million to Expand Markets for Higher Blends

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April 01, 2025

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by Todd Neeley (DTN Progressive Farmer) The Trump administration on Monday released $537 million for 543 biofuels blending infrastructure projects in 29 states, as part of the USDA's Higher Blends Infrastructure Incentive Program.

Ahead of U.S. Secretary of Agriculture Brooke Rollins' visit to Iowa on Monday, USDA said in an announcement the projects include new projects approved within President Donald Trump's first 100 days in office, in response to an executive order he signed on energy.

"President Trump is honoring our commitment to America's farmers, ranchers and small businesses, especially here in Iowa where corn and soy growers are crucial to supporting ethanol and biodiesel production," Rollins said in a news release.

"Under the President's leadership we are moving away from the harmful effects of misguided climate policies like the green new deal. Instead, USDA will deploy energy investments that prioritize the needs of our rural communities. Through HBIIP, we will expand access to domestic, homegrown fuels which will increase good paying jobs for hardworking Americans, restore rural prosperity and strengthen our nation's energy security."

The HBIIP program was created by Trump during his first term.

...

Renewable Fuels Association President and CEO Geoff Cooper said in a statement the program is important to expand markets for higher ethanol blends including E15 and E85 as well as B20 biodiesel blends.

"We thank secretary Rollins and president Trump for releasing USDA funding that will help expand the domestic market for American-made renewable fuels," Cooper said.

"The HBIIP program has been a powerful tool to help open new markets for lower-priced fuel blends like E15 and E85, directly supporting increased demand for America's farmers. We look forward to continuing to work together with USDA under secretary Rollins' leadership to grow new market opportunities for U.S. ethanol producers and our partners in agriculture."

HBIIP provides cost-share grants to retailers who are working to expand access to biofuel blends, aiming to significantly increase the sale and use of ethanol and biodiesel.

On average each grant dollar has leveraged four dollars in private investment.

"This is very good news and IRFA members appreciate secretary Rollins's announcement as construction season is upon us," said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

"E15 is the largest untapped domestic market for American agriculture. Today's announcement means farmers will benefit from higher demand and consumers will benefit from lower-cost options at the pump. HBIIP, a program created by USDA during President Trump's first term, is key to helping retailers navigate current regulations on dispensing equipment for higher blends."

Shaw said in a news release that producers are urging Rollins to work with the U.S. Environmental Protection Agency to implement Trump's previous directive to allow all current equipment to store and dispense E15 blends.

"By streamlining regulations, this will greatly speed up the adoption of E15 across the country while saving hundreds of millions of dollars in unneeded expenditures," Shaw said. READ MORE / MORE

Related articles

Ag Secretary Gets Earful About E15 (Energy.AgWired.com; includes AUDIO)
USDA Secretary Announces HBIIP Funding in Iowa (Energy.AgWired.com)
USDA to release $537 million in HBIIP funds (Ethanol Producer Magazine)

Excerpt from Energy.AgWired.com: Secretary of Agriculture Brooke Rollins heard a lot about the ethanol industry’s need for year-round, nationwide E15 during her trip to Iowa yesterday, starting with her visit to the Elite Octane ethanol facility in Atlantic, Iowa.

“We’re very bullish for the next three with President Trump leading the way. The seeds of policy change to drive profitability for our corn and soybean farmers in this state are going to be biofuels,” said Nick Bowdish, President and CEO of Elite Octane. “With E15, not only the legislative fix for RVP, but deeming all the infrastructure at these retailers to be compatible for E15…that combined with a strong RFS and RVO standards, we’re very bullish this administration has the farmers’ back and is going to deliver for Iowa.”

Rollins reiterated the administration’s support for E15 several times during her visit Monday, including at the Iowa Ag Leaders Dinner. “We’ve got E15. We’ve got a lot of things we’ve got to do, but know that you have such a strong advocate, not only at USDA but also at the White House with President Donald Trump,” said Rollins. “In addition, USDA is aggressively exploring additional ways to unleash American energy and to incentivize the production and use of homegrown biofuels, including working alongside my friends at the EPA to develop the renewable volume obligation as well as supporting EPA’s review of any potential emergency waivers on fuel to allow the nationwide year-round sale of E15.”

Rollins’ trip to an ethanol plant in one of the nation’s top producing states was encouraging to ethanol organizations like the Renewable Fuels Association (RFA), of which Elite Octane is a member. “We thank Secretary Rollins and President Trump for releasing USDA funding that will help expand the domestic market for American-made renewable fuels,” said RFA President and CEO Geoff Cooper. “We look forward to continuing to work together with USDA under Secretary Rollins’ leadership to grow new market opportunities for U.S. ethanol producers and our partners in agriculture.” READ MORE

Excerpt from Energy.AgWired.com: Secretary of Agriculture Brooke Rollins visited an Iowa ethanol plant Monday to announce USDA will release obligated funding under the Higher Blends Infrastructure Incentive Program (HBIIP) for 543 projects totaling $537 million in 29 states. That funding had been included in the Inflation Reduction Act (IRA).

Secretary Rollins made the announcement at Elite Octane in Atlantic, Iowa, along with an entourage that included Senator Joni Ernst (R-IA), Iowa Governor Kim Reynolds, Reps. Zach Nunn and Mariannette Miller-Meeks, and Iowa Secretary of Agriculture Mike Naig.

In a press availability with the other dignitaries, Rollins was first asked about nationwide, year-round E15. “This is a priority of our administration,” said Rollins. “We hear you and we understand how important it is.” READ MORE

Excerpt from Ethanol Producer Magazine: The $537 million will support 543 projects in 29 states. According to the USDA, the released funds include new projects approved by the Trump Administration. The agency, however, has not disclosed how many of the 543 projects represent newly awarded funding and how many of the projects represent previously announced awards that were under review by the administration.

The administration earlier this year paused federal funding distributions to ensure alignment with White House priorities. The Unleashing American Energy Executive Order, issued on Jan. 20, directed all federal agencies to terminate the “Green New Deal” by immediately pausing the disbursement of funds appropriated through the Inflation Reduction Act of 2022 and review whether those disbursements are in line policy guidelines outlined by the Trump administration. Within 90 days, the heads of each federal agency were to submit a report to the National Economic Council and the White House Office of Management and Budget detailing the findings of their reviews. The impacted IRA funds would be eligible for disbursement only after the OMB director and assistant to the president for economic policy determined that such disbursements are consistent with the administration’s goals. The IRA allocated $450 million to the HBIIP program.

“President Trump is honoring our commitment to America’s farmers, ranchers and small businesses, especially here in Iowa where corn and soy growers are crucial to supporting ethanol and biodiesel production,” Rollins said. “Under the President’s leadership, we are moving away from the harmful effects of misguided climate policies like the Green New Deal. Instead, USDA will deploy energy investments that prioritize the needs of our rural communities. Through HBIIP, we will expand access to domestic, homegrown fuels which will increase good paying jobs for hardworking Americans, restore rural prosperity and strengthen our nation’s energy security.”

HBIIP, launched in 2020, provides grants to fueling station and distribution facility owners—including marine, rail, and home heating oil facilities—to expand access to domestic biofuels, a clean and affordable source of energy. The investments help business owners install and upgrade infrastructure, such as fuel pumps, dispensers and storage tanks to expand the availability of higher biofuel blends, including E15, E85 and B20.

Several funding allocations have been made to HBIIP since its inception. The USDA Commodity Credit Corp. initially made up to $100 million available under the program for fiscal year (FY) 2020. Approximately $22 million was carried forward and offered for FY 2021. An additional $100 million was offered in FY 2022 funding. Most recently, $450 million in FY 2023 and 2024 HBIIP funding was made available under the Inflation Reduction Act. Applications for IRA funding were accepted on a quarterly basis for five quarters, starting July 1, 2023, through Sept. 30, 2024. The application period closed on the final day of each quarter. The USDA indicated there would be an option for a sixth application window if funding had not been exhausted, but no sixth application window has yet been announced.

Growth Energy is applauding the release of HBIIP funds. “The release of this [HBIIP] funding will empower retailers to offer more American-made biofuels, which drives demand for ethanol and the corn used to make it,” said Emily Skor, CEO of Growth Energy. “More ethanol also means lower fuel costs for consumers, making the release of these funds a huge win for everyone in the biofuels supply chain, from the farm to the fuel tank. We applaud Sec. Rollins and the Trump Administration for their leadership, and for delivering on their promise to support American farmers and biofuel producers. We look forward to seeing how retailers put these funds to good use and will continue to work with the Administration as it aims to drive American energy dominance and rural growth by expanding access to homegrown biofuels.”

The Renewable Fuels Association is also praising the release of HBIIP funds. “We thank Secretary Rollins and President Trump for releasing USDA funding that will help expand the domestic market for American-made renewable fuels,” said Geoff Coope, president and CEO of the RFA. “The HBIIP program has been a powerful tool to help open new markets for lower-priced fuel blends like E15 and E85, directly supporting increased demand for America’s farmers. We look forward to continuing to work together with USDA under Secretary Rollins’ leadership to grow new market opportunities for U.S. ethanol producers and our partners in agriculture.” READ MORE