Biden Administration Announces Funding for Homegrown Biofuels under Inflation Reduction Act

By Lynn L. Bergeson and Carla N. Hutton
 
The U.S. Department of Agriculture announced on June 26, 2023, that it plans to invest up to $500 million from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and “give Americans additional cleaner fuel options at the pump.” USDA notes that in December 2022, it made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP). On June 26, 2023, USDA Secretary Tom Vilsack announced the first awardees of 59 infrastructure projects that will receive a total of $25 million. In addition, USDA announced that in July 2023 it will begin accepting applications for $450 million in grants through HBIIP. These grants will continue to support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers, and storage tanks.