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Secretary Perdue Directs USDA Fleet to Increase Biofuels Usage, Announces Notice of Funding for Biofuels Infrastructure Program

Secretary Perdue Directs USDA Fleet to Increase Biofuels Usage, Announces Notice of Funding for Biofuels Infrastructure Program
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(Washington, D.C., February 28, 2020) – U.S. Secretary of Agriculture Sonny Perdue issued a memo today directing the U.S. Department of Agriculture (USDA) to acquire alternative fueled vehicles (AFV) when replacing conventionally fueled vehicles. USDA owns and operates one of the largest civilian fleets in the Federal Government and this move to a fleet that can use E85 or biodiesel will increase efficiencies and performance. Additionally, as part of the President Donald J. Trump’s October agreement to seek opportunities to facilitate the availability of higher biofuel blends across the country, USDA will make $100 million in grants available this year for the newly created Higher Blends Infrastructure Incentive Program (HBIIP). Through this program, transportation fueling and biodiesel distribution facilities will be able to apply for grants to help install, retrofit, and/or upgrade fuel storage, dispenser pumps, related equipment and infrastructure to be able to sell ethanol and biodiesel. The Department plans to publish application deadlines and other program information in the Federal Register this spring.

 

“Both of these actions underscore USDA is putting our money where our mouth is when it comes to increased biofuels usage. Expanding nationwide infrastructure that offers biofuels and increasing the number of biofuel capable vehicles in our fleet will increase the use of environmentally friendly fuel with decreased emissions, driving demand for our farmers and improving the air we breathe,” Secretary Perdue said. “President Trump is fighting for our corn and soybean growers and biofuel producers by finalizing year-round E15, ensuring that more than 15 billion gallons of ethanol and 2.43 billion gallons of biodiesel enters the market in 2020, and opening up new markets abroad. USDA will continue to do its part to encourage the use of homegrown energy.”

 

Background on Higher Blends Infrastructure Incentive Program (HBIIP):

HBIIP will consist of up to $100 million in funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and/or offering sales incentives for the installation of fuel pumps, related equipment, and infrastructure. Cost-share grants and/or incentives will be made available for higher fuel ethanol/biodiesel blends such as “E15” and “B20” (or higher), at vehicle fueling locations, including, but not limited to, local fueling stations, convenience stores (CS), hypermarket fueling stations (HFS), and/or fleet facilities, as well as fuel terminals for biodiesel. Prospective participants and stakeholders should expect additional specific program information and requirements to be published by mid-spring which will clarify the application process, eligibility, and how applications for grant funding will be scored.

 

Background on USDA Fleet:

USDA owns and operates one of the largest civilian fleets in the Federal Government. USDA is moving to acquire E85- or biodiesel-capable vehicles that meet USDA mission requirements instead of those that take conventional gasoline. This will occur over time during the normal fleet renewal process. USDA currently has 37,000 vehicles and replaces approximately 3,000 every year. Secretary Perdue directed USDA to:

  • Acquire E85 or biodiesel-capable vehicles that meet USDA mission requirements;
  • Use station locator websites and applications to fuel with E15, E85, and biodiesel where available;
  • Prioritize the purchase of E15 for gasoline vehicles without E85 capability and the purchase of renewable diesel blends for diesel vehicles without B20 capability; and
  • For USDA locations that have in-house refueling pumps, coordinate with fuel vendors to acquire and provide biofuel blends, including E15, E85, B20 and higher biodiesel blends, and renewable diesel blends.

 

These actions have the potential to increase USDA’s annual consumption of E15 by up to 9 million gallons, E85 by 10 million gallons, and biodiesel and renewable diesel blends by up to 3 million gallons. As availability of E15, E85, and biodiesel expands through the nation, USDA has the opportunity to reach these goals and have a significant impact. Where biofuels are available, the USDA fleet is directed to use biofuels.

 

Background on USDA’s Agricultural Innovation Agenda:

Earlier this month, Secretary Perdue unveiled the Agricultural Innovation Agenda, a department-wide initiative to align resources, programs, and research to position American agriculture to better meet future global demands. Investing in the availability of innovative fuels for American consumers supports this vision while we fulfill our motto to “Do Right and Feed Everyone.”

 

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