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Whether you’re running a gas station, a fuel distribution facility, or simply looking to expand into higher blends of biofuels, this blog post covers a massive opportunity you don’t want to miss. We’re diving deep into the Higher Blends Infrastructure Incentive Program (HBIIP), a game-changing initiative offering $450 million in grants for infrastructure upgrades. Stick around to learn how you can secure up to $5 million to scale your business and capitalize on the growing renewable fuel market.

What is the Higher Blends Infrastructure Incentive Program?

The Higher Blends Infrastructure Incentive Program, or HBIIP, is designed for business owners looking to expand their capabilities to handle higher ethanol and biodiesel blends. Under the Inflation Reduction Act, the USDA is offering grants that cover up to 75% of project costs with awards of up to $5 million per project. Whether you operate a small fuel station or manage large distribution facilities, this program can help fund necessary upgrades to handle higher blends of ethanol and biodiesel, expanding your market and increasing revenue.

Why Should You Care?

If you’re in the fuel industry, adopting higher blends of renewable fuels can make you a key player in an evolving market. Government incentives are shifting in favor of renewable fuel use, and with HBIIP funds, you have the opportunity to upgrade fuel dispensers, storage tanks, and related equipment to accommodate these higher blends. This ensures you stay ahead of the competition while contributing to a greener future.

How to Apply

The application period runs quarterly through September 2024, but funds are limited, so you need to act fast. Grants are awarded based on a priority scoring system, with the USDA looking for projects that offer the most significant increase in higher blend fuel sales per dollar spent. Facilities located in high-demand areas, along interstate highways, or serving as sole stations in rural communities have increased chances for funding.

Who Qualifies?

Owners of transportation fueling and fuel distribution facilities, such as gas stations, convenience stores, and even home heating oil distribution sites, are eligible. You must own or have legal control over the locations you’re upgrading, and the upgrades must focus solely on making equipment compatible with higher blends of ethanol and biodiesel. The HBIIP can fund up to 75% of costs for retrofitting or installing new fuel dispensers, storage tanks, and related equipment.

Important Considerations

Keep in mind that the program won’t cover non-renewable fuel projects or any business operations like gambling or illegal activities. Each business owner can submit only one application per quarter, but you can include multiple facilities in a single application. If there isn’t enough funding to cover your entire project, the USDA might ask if you’re willing to reduce your grant request to the remaining available funds. Projects must be ready to go upon submission, as costs incurred before submission are not covered.

Tips for Approval

To improve your chances of securing a grant, your project should demonstrably boost higher blend fuel sales, as this is a key factor in the scoring process. Consider the location of your facility; rural or underserved areas may receive additional points. Lastly, include all supporting documentation with your application to avoid delays or disqualification.

Conclusion

The Higher Blends Infrastructure Incentive Program offers an incredible opportunity to upgrade your facilities, reduce environmental impact, and tap into a growing market for renewable fuels. With $450 million on the table and funding awarded quarterly through 2024, now is the time to take action. Don’t miss out on the chance to future-proof your business and capitalize on the significant shift toward cleaner energy. If you found this information helpful, consider sharing it with your network and stay tuned for more insights on business funding opportunities.

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