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CHAMPAIGN, Ill., Sept. 10, 2015 – Agriculture Secretary Tom Vilsack today announced that 21 states will receive grants through the Biofuel Infrastructure Partnership (BIP) to add infrastructure needed to supply more renewable fuel to America's drivers. Since announcing the program in May 2015, the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) received applications requesting over $130 million, outpacing the $100 million that is available. With a more than 1:1 match from private and state resources, USDA estimates that the BIP grants will support nearly 5,000 pumps at over 1,400 fueling stations across the country.
"The quality and geographic diversity of the applications, backed by supportive state and private partners, demonstrate the strong demand across the country for cleaner, more affordable fuel," said Secretary Vilsack. "The Biofuel Infrastructure Partnership is one approach USDA is using to aggressively pursue investments in American-grown renewable energy to create new markets for U.S. farmers and ranchers, help Americans save money on their energy bills, support America's clean energy economy, cut carbon pollution and reduce dependence on foreign oil and costly fossil fuels."
A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy most consumers can purchase at the pump. USDA estimates that this investment will more than double the number of stations that offer intermediate blends of ethanol, mainly E15 fuel levels, nationwide.
Through BIP, USDA will award competitive grants, matched by states, to expand the infrastructure for distribution of higher blends of ethanol. BIP funds from the Commodity Credit Corporation must be used to pay a portion of the costs related to the installation of fuel pumps and related infrastructure dedicated to the distribution of higher ethanol blends, for example E15 and E85, at vehicle fueling locations. The matching contributions may be used for these items or for related costs such as additional infrastructure to support pumps, marketing, education, data collection, program evaluation and administrative costs. This partnership will expand markets for farmers, support rural economic growth and the jobs that come with it, and ultimately give consumers more choices at the pump.
The preliminary list of state finalists and estimated pumps includes:
Colorado 28
Florida 892
Illinois 428
Indiana 110
Iowa 187
Kansas 174
Louisiana 110
Michigan 89
Minnesota 620
Missouri 171
Nebraska 80
North Carolina 190
North Dakota 90
Ohio 148
Pennsylvania 308
South Dakota 74
Texas 763
Virginia-Maryland 191
West Virginia 107
Wisconsin 120
TOTAL 4880
Funding amounts for each state will be announced at a later date. For more information about BIP, visit the Energy Programs website.
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