Higher Blends Infrastructure Incentive Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
The Higher Blends Infrastructure Incentive Program (HBIIP) is a new program that will expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels. To accompany the program, a new online grant application system has been developed to be used in applying for participation in the HBIIP grant program.
The HBIIP grant program includes infrastructure projects for fueling station companies and fuel distribution facility companies.
Eligibility
Eligible Applicants
- Federally Recognized Tribal Government
- Nonprofit Organization
- For-Profit Organization
- Small Business Person
Owners of transportation fueling and fuel distribution facilities located in the United States and its territories may apply for this program. Eligible entities would include—fueling stations, convenience stores, hypermarket retailer fueling stations, fleet facilities, and similar entities with equivalent capital investments, as well as fuel/biodiesel terminal operations, midstream partners, and heating oil distribution facilities or equivalent entities.
Applicants must include all proposed activity under a single application.
How to Apply
Award Procedure
HBIIP grants will be administered in accordance with Departmental Regulations, and as otherwise specified in this Notice.
Applicants selected for funding, will receive a signed notice of Federal award containing instructions on requirements necessary to proceed with execution and performance of the award.
Applicants not selected for funding will be notified in writing and informed of any review and appeal rights. Awards to successfully appealed applications will be limited to available funding.
Decision Timeline
- Approval: From 60 to 90 days
- Appeal: From 30 to 60 days
Program details & compliance
Description
Under the HBIIP, funds will be awarded to assist transportation fueling and fuel distribution facilities to convert their facilities through upgrade or installation of equipment required to ensure all equipment is fully compatible with higher blends of ethanol (i.e., greater than 10 percent ethanol) and biodiesel (greater than 5 percent biodiesel) (HB fuel). The program will share the costs related to the upgrading of fuel dispensers (gas and diesel pumps) and attached equipment, underground storage tank system components (which includes but is not limited to tanks, pumps, ancillary equipment, lines, gaskets, and sealants), and other infrastructure required at a location to ensure the environmentally safe availability of fuel containing ethanol blends greater than 10 percent or fuel containing biodiesel blends greater than 5 percent.
Mission Categories
Primary: Small Business
Other categories:
Construction Rehabilitation
Use of Funds
Restrictions
Funds are to assist owners of transportation fueling and fuel distribution facilities located in the USA. Owners or operators who store regulated substances that contain more than 20 percent biodiesel or more than 10 percent ethanol, such as 15 percent ethanol or E15, must notify their implementing agency 30 days before storing the fuel. Owners and operators must also keep records demonstrating that their UST system is compatible with the substance stored. Under HBIIP up to $100 million is made available to eligible participants. Of the total amount of available funds, approximately $86 million will be made available to transportation fueling facilities (including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities with capital investments) for eligible implementation activities related to higher blends of fuel ethanol greater than 10 percent ethanol, such as E15 or higher; and approximately $14 million will be made available to transportation fueling facilities and fuel distribution facilities (including terminal operations, depots, and midstream partners), for eligible implementation activities related to higher blends of biodiesel. Grants for up to 50 percent of total eligible project costs, but not more than $5 million greater than 5 percent biodiesel, such as B20 or higher. Grants for up to 50 percent of total eligible project costs, but not more than $5 million per applicant. Only one application per applicant.
Required Documentation
An eligible project must conform to all applicable Federal, State, Tribal and local regulatory requirements pertaining to:
(1) Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST), 40 CFR parts 280 and 281;
(2) Regulation of Fuels and Fuel Additives, 40 CFR part 80;
(3) Occupational Safety and Health Standards Subpart H—Hazardous Start Printed Page 26659Materials Section 106—Flammable Liquids, 29 CFR 1910.106;
(4) Safety and Health Regulations for Construction Subpart F—Fire Protection and Prevention Section 152—Flammable Liquids, 29 CFR 1926.152; and
(5) Automotive Fuel Ratings, Certification, and Posting, 16 CFR part 306.
Matching Requirements
Those project funds required to receive an HBIIP grant. The applicant is responsible for securing the remainder of the total eligible project costs not covered by grant funds. Matching funds are comprised of eligible in-kind contributions from third parties and/or cash. In-kind contributions by the applicant cannot be used to meet the matching fund requirement. Written commitments for matching funds (e.g., Letters of Commitment and bank statements) must be submitted with the Certification of Matching Funds when the application is submitted. Funds provided by the applicant in excess of matching funds are not matching funds. Unless authorized by statute, other Federal grant funds cannot be used to meet a matching funds requirement. Passive third-party equity contributions are acceptable for HBIIP projects, including equity raised from the sale of Federal tax credits. In the event of ineligible, overstated, or otherwise unsubstantiated claims in the Certification of Matching Funds, the Agency reserves the right to adjust an application's grant request such that it is commensurate with eligible/actual Matching Funds, or take otherwise action as deemed appropriate.
Up to 10 percent of an applicant's Matching Funds requirement (up to five percent of total project costs) may be used to pay consumer education and/or marketing and/or signage related expenses. HBIIP grant funds awarded to transportation fueling stations are intended to assist with converting those facilities to ensure full compatibility with HB fuel through upgrade or installation of fuel dispensers, related equipment, and infrastructure. And while the contributions of consumer education and/or marketing and/or signage toward a fuel station's fuel sales are well recognized, a very tall sign to display fuel prices does not in any way assist a facility with higher blends compatibility. Therefore, the Agency determined that while HBIIP grant funds may not be used for consumer education and/or marketing and/or signage.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements