USDA Seeks Input on New Ethanol Sales Infrastructure Incentive Program DEADLINE January 30, 2020

(U.S. Department of Agriculture) The U.S. Department of Agriculture (USDA) is seeking public input to help with the creation of the Higher Blends Infrastructure Incentive Program (HBIIP), a new program that will expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels.

“Feedback from farmers, retailers and biofuels producers is critical to the success of this future program,” Agriculture Secretary Perdue said. “Under the leadership of President Trump, USDA remains committed to fulfilling a key promise to American farmers to enhance the promotion of biofuels.”

President Trump has made it abundantly clear he is unleashing the full potential of American energy production as we retake our rightful place as the world’s leader and become energy independent. Expanding the sale of biofuels will provide consumers with more choices when they fill up at the pump, including environmentally friendly fuel with decreased emissions, driving demand for our farmers and improving the air we breathe.

This Request for Information (RFI) solicits information on options for fuel ethanol and biodiesel infrastructure, innovation, products, technology, and data derived from all HBIIP processes and/or science that drive economic growth, promote health, and increase public benefit. Through this RFI, USDA seeks input from the public, including but not limited to: retail fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities with capital investments; equipment providers, equipment installers, certification entities and other stakeholder/manufacturers (both upstream and down); fuel distribution centers, including terminals and depots; and those performing innovative research, and/or developing enabling platforms and applications in manufacturing, energy production, and agriculture.

This RFI is intended to gather suggestions on areas of greatest priority within the HBIIP, as well as past or future Federal government efforts to build, promote, and sustain the sale and use of renewable fuels. The public input provided in response to this RFI will inform USDA as well as private sector and other stakeholders with interest in and expertise relating to such a promotion.

A full description of the RFI is available on page 2699 of the Jan. 16, 2020, Federal Register.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in innovative tools including renewable fuels is a key recommendation of the task force. To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov. READ MORE

Excerpt from Ripon Advance News Service: U.S. Sen. Joni Ernst (R-IA) on Jan. 21 applauded a new initiative by the U.S. Department of Agriculture (USDA) to build out domestic ethanol and biodiesel infrastructure at retail gas stations across the country.

“As the number one ethanol and biodiesel producing state in the country, Iowans understand how important this step is for ensuring the future success of the industry, and I commend the Trump administration for making this a priority,” Sen. Ernst said on Tuesday.

During the Iowa Renewable Fuels Summit in Altoona, Iowa, on Jan. 16, U.S. Deputy Secretary of Agriculture Steve Censky announced that USDA is creating the Higher Blends Infrastructure Incentive Program (HBIIP) and working with stakeholders to help increase the sales of both E15, which is gasoline blended with 15 percent ethanol, and B20 biodiesel, which is diesel blended with up to 20 percent biodiesel.

“I’m thrilled to see USDA working with folks across the country to find ways to expand infrastructure for higher blends of ethanol — such as E15 that we’ve made available year-round — to create more choice at the pump and increase demand for the product,” said Sen. Ernst, chairman of the U.S. Senate Agriculture Subcommittee on Rural Development and Energy, which oversees USDA’s Rural Development programs across facilities, utilities, loans, and renewable energy.

Sen. Ernst, who continues to work to advance and support renewable fuels, is an original cosponsor of the Renewable Fuel Standard (RFS) Integrity Act of 2019, S. 1840, which is lead sponsored by U.S. Sen. Deb Fischer (R-NE). The legislation aims to ensure that the U.S. Environmental Protection Agency properly accounts for exempted gallons in the annual renewable volume obligations it sets each November, according to the senator’s staff. READ MORE

Excerpt from Renewable Fuels Association: “This program builds on the success of USDA’s original Biofuels Infrastructure Partnership, which helped increase the availability of E15, E85 and other higher ethanol blends at retail sites across the country. We stand ready to assist USDA and fuel retailers throughout the development and execution of this important program to promote high-octane, low-carbon renewable fuels.”

In its response, RFA recommended that available funding be primarily directed at offsetting the costs to install and/or upgrade retail and wholesale infrastructure compatible with higher biofuel blends. In addition, RFA stated that funding assistance should be accessible to retailers of all sizes and on a nationwide basis. This should include everything from small, single-store owners to mid-size retailers and large chains.

RFA also noted that many of the barriers that discourage broader expansion of higher ethanol blends are regulatory in nature and under the jurisdiction of EPA. RFA’s comments ask USDA to encourage its peer agency to take action to resolve these many barriers.