USDA To Launch New Biofuel Infrastructure Program

  • Friday, 17 January 2020 11:11

The US Department of Agriculture (USDA) is seeking input from stakeholders to create a Higher Blends Infrastructure Incentive Program (HBIIP) to expand the availability of ethanol and biodiesel blends.

"The overall goal of HBIIP is to increase biodiesel fuel and ethanol sales and use. HBIIP is an incentive program intended to encourage a more comprehensive approach to marketing biodiesel fuel and higher levels of ethanol by incentiving the installation of infrastructure for biodiesel fuel and higher blends of ethanol," the USDA said. 

Specifically, the USDA is seeking feedback from farmers, retailers and biofuel producers for the HBIIP. 

The USDA said approximately 93 percent of the 263 million vehicles registered in the country can use E15 while there are more than 22 million flex-fuel vehicles on the road capable of utilizing blends up to E85. 

"Based on 2018 fuel consumption levels, these vehicles, vehicles for the 2001 and new model years, plus FFVs - together had the capacity to consume approximately 29 billion gallons of ethanol in the form of E15 and E85," it said.

However, the USDA said, the use of both ethanol blends have been limited due to the lack of stations offering E15 and E85 nationwide.

"While the production and availability of higher-level ethanol blends is increasing and barriers to expansion are being removed, it is clear, that fueling intrastructure, remains contrained and limits the distribution of higher blends," it said. 

Learn more about the HBIIP here