USDA to release $537 million in HBIIP funds
On March 31, 2025, Agriculture Secretary Brooke Rollins announced the release of $537 million under the Higher Blends Infrastructure Incentive Program (HBIIP), funding 543 projects across 29 states. This initiative aims to expand biofuel infrastructure, enhancing access to renewable fuels like E15 and B20, thereby supporting rural economies and strengthening U.S. energy security.
Agriculture Secretary Brooke Rollins on March 31 visited Elite Octane LLC, a 155 MMgy ethanol plant in Atlantic, Iowa, to announce the USDA will release $537 million in obligated funding under the Higher Blends Infrastructure Incentive Program.
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.”
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Source : Ethanol Producer Magazine
