USDA Announces $210 Million to be Invested in Renewable Energy Infrastructure through the Biofuel Infrastructure Partnership

October 28, 2015

5.10.13

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USDA Announces $210 Million to be Invested in Renewable Energy Infrastructure through the Biofuel Infrastructure Partnership

21 States and Private Partners Match Federal Funds to Expand Infrastructure and Increase Fuel Options for Consumers

USDA is partnering with 21 states through the Biofuel Infrastructure Partnership (BIP) to nearly double the number of fueling pumps nationwide that supply renewable fuels to American motorists. In May 2015, USDA announced the availability of $100 million in grants through the BIP, and that to apply states and private partners match the federal funding by a 1:1 ratio. USDA received applications requesting over $130 million, outpacing the $100 million that is available. With the matching commitments by state and private entities, the BIP is investing a total of $210 million to strengthen the rural economy.

The 21 states participating in the BIP include Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Virginia, West Virginia, and Wisconsin. The amount awarded to each state is available at: www.fsa.usda.gov/programs-and-services/energy-programs/bip/index. The final awards being announced today are estimated to expand infrastructure by nearly 5,000 pumps at over 1,400 fueling stations. 

A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy that consumers can purchase.  The new partnership will increase the number of pumps, storage and related infrastructure that offer higher blends of ethanol, such as E15, E85, and even intermediate combination blends. 

USDA’s Office of the Chief Economist just released a comprehensive report on ethanol. The report, titled U.S. Ethanol: An Examination of Policy, Production, Use, Distribution, and Market Interactions, brings clarity to the complex interaction of ethanol production with agricultural markets and government policies. The corn ethanol industry is the largest biofuel producer in the country, with production increasing from about 1.6 billion gallons in 2000 to just over 14 billion gallons in 2014, stimulating economic activity in rural communities. Visit www.usda.gov/oce/reports/energy/EthanolExamination102015.pdf to read the complete report. 

BIP is administered by the USDA Farm Service Agency. For more information, visit www.fsa.usda.gov/programs-and-services/energy-programs/index.


Questions?
Please contact your local FSA Office.