This article is taken from the July 13 USDA Grain Transportation Report.

On June 26, USDA announced plans to invest up to $500 million from the Inflation Reduction Act of 2022 in the Higher Blends Infrastructure Incentive Program (HBIIP).

The HBIIP aims to increase the availability of domestic biofuels by expanding infrastructure for renewable fuels derived from agricultural products—including fuel distribution infrastructure.

In December 2022, USDA made $50 million available to HBIIP. One grant-recipient company will upgrade the existing rail unloading rack spill protection at its California facility.

The remaining $450 million will be allocated quarterly ($90 million each quarter) from July 1, 2023, to September 30, 2024.

Each quarter, approximately $18 million (20 percent) will be set aside for biofuels transportation—specifically, “fuel distribution facilities, including terminal operations, depots and midstream operations.” Interested applicants can apply for HBIIP funding.