Opportunity Information: Apply for RBCS 2023 2024 01 HBIIP
The Higher Blends Infrastructure Incentive Program (HBIIP) is a U.S. Department of Agriculture (USDA) grant program run through the Rural Business-Cooperative Service that is designed to expand the physical infrastructure needed to sell and distribute higher blends of renewable fuels. Its core goal is to significantly increase the sales and everyday use of higher ethanol and biodiesel blends by helping pay for upgrades and buildouts that make these fuels more available at the retail and distribution level. In practical terms, the program focuses on expanding access to ethanol blends above 10 percent (for example, E15 and higher) and biodiesel blends above 5 percent (for example, B20 and higher). By sharing project costs with applicants, HBIIP aims to reduce the financial barrier that often prevents fuel marketers and distributors from installing compatible equipment and offering these higher-blend fuels to consumers and fleets.
A key point for applicants is that HBIIP does not accept applications through Grants.gov. Instead, applicants must use USDA's dedicated Online Application System for this program. The official instructions are hosted at https://www.rd.usda.gov/hbiip, where applicants are directed to the "How To Apply" section and then the "To Apply" tab to request access and submit materials through the correct portal. This matters because an otherwise eligible applicant can miss the opportunity simply by trying to apply through the wrong platform.
HBIIP is open to a wide range of applicants, reflecting the many types of organizations involved in fuel retailing, storage, and distribution. Eligible applicants include various levels of government (state, county, city or township, and special districts), educational institutions (public and private institutions of higher education), tribal governments and tribal organizations, nonprofits (both 501(c)(3) and non-501(c)(3)), individuals, and for-profit entities including small businesses and other for-profit organizations. On the facilities side, the program is geared toward three main categories. First are transportation fueling facilities such as retail fueling stations, convenience stores with fueling, hypermarket fueling stations, and fleet fueling facilities, including rail and marine fleets, as well as similar entities making capital investments. Second are fuel distribution facilities like terminal operations, depots, and midstream partners (and equivalent operations) that play a major role in moving fuel from production to end users. Third are home heating oil distribution facilities, recognizing that higher biodiesel blends can also be used in heating fuel markets.
Funding under HBIIP is substantial and structured around regular availability. The notice indicates that approximately $90 million is made available each quarter for eligible activities that support higher-blend ethanol and biodiesel infrastructure. The funding is intended for implementation-oriented investments directly tied to making higher blends available, such as infrastructure and equipment improvements at retail stations, fleet fueling sites, terminals, depots, midstream operations, and home heating oil distribution businesses. While the opportunity text does not list every eligible cost item, the emphasis is on tangible buildout and upgrade activities that enable the storage, blending, handling, and dispensing of E15+ ethanol blends and B20+ biodiesel blends.
Awards are issued as cost-share grants, which means the grant does not typically cover the full project cost. Under the stated terms, USDA may cover up to 75 percent of total eligible project costs, with a maximum award size (award ceiling) of $5,000,000 per award, whichever is less. This structure requires applicants to bring matching funds or other non-grant financing for the remaining share of the project, but it also substantially reduces the out-of-pocket cost of infrastructure improvements that can be capital intensive.
Administratively, this opportunity is listed as a discretionary grant program under Funding Opportunity Number RBCS 2023 2024 01 HBIIP and is associated with CFDA/Assistance Listing 10.754. The agency is the Department of Agriculture, Rural Business-Cooperative Service. The posting indicates a creation date of June 28, 2023, and an original closing date of September 30, 2024, with an expected 900 awards. The maximum award amount is clearly stated as $5,000,000, aligning with the cost-share cap described in the program terms.Apply for RBCS 2023 2024 01 HBIIP
- The Department of Agriculture, Rural Business-Cooperative Service in the business and commerce, energy, environment, transportation sector is offering a public funding opportunity titled "Higher Blends Infrastructure Incentive Program (HBIIP)" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.754.
- This funding opportunity was created on Jun 28, 2023.
- Applicants must submit their applications by Sep 30, 2024. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $5,000,000.00 in funding.
- The number of recipients for this funding is limited to 900 candidate(s).
- Eligible applicants include: State governments, County governments, City or township governments, Special district governments, Independent school districts, Public and State controlled institutions of higher education, Native American tribal governments (Federally recognized), Native American tribal organizations (other than Federally recognized tribal governments), Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education, Private institutions of higher education, Individuals, For profit organizations other than small businesses, Small businesses.
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Higher Blends Infrastructure Incentive Program (HBIIP) FAQs
What is the Higher Blends Infrastructure Incentive Program (HBIIP)?
HBIIP is a U.S. Department of Agriculture (USDA) grant program (run through the Rural Business-Cooperative Service) focused on expanding the physical infrastructure needed to sell and distribute higher blends of renewable fuels.
What is the main goal of HBIIP?
The program aims to significantly increase the sales and everyday use of higher ethanol and biodiesel blends by helping pay for upgrades and buildouts that make these fuels more available at the retail and distribution level.
What fuel blends does HBIIP focus on?
HBIIP focuses on expanding access to ethanol blends above 10 percent (for example, E15 and higher) and biodiesel blends above 5 percent (for example, B20 and higher).
How does HBIIP reduce the cost barrier for projects?
Awards are issued as cost-share grants, meaning USDA shares project costs with applicants to reduce the financial barrier that often prevents installation of compatible equipment and offering higher-blend fuels.
Is this a cost-share grant or a grant that covers 100% of the project?
This is a cost-share grant. The grant does not typically cover the full project cost.
What percentage of eligible project costs can USDA cover?
Under the stated terms, USDA may cover up to 75 percent of total eligible project costs.
What is the maximum award amount under HBIIP?
The maximum award size (award ceiling) is $5,000,000 per award. USDA may cover up to 75 percent of total eligible project costs, with the award capped at $5,000,000, whichever is less.
Do applicants need to provide matching funds?
Yes. Because HBIIP is a cost-share program, applicants are expected to bring matching funds or other non-grant financing for the remaining share of the project.
How much funding is available through HBIIP?
The notice indicates that approximately $90 million is made available each quarter for eligible activities that support higher-blend ethanol and biodiesel infrastructure.
How often is funding made available?
Funding is described as being made available on a quarterly basis (approximately $90 million each quarter).
Who is the federal agency running this program?
The program is administered by the U.S. Department of Agriculture (USDA) through the Rural Business-Cooperative Service.
What is the Funding Opportunity Number for this grant?
The opportunity is listed under Funding Opportunity Number RBCS 2023 2024 01 HBIIP.
What is the CFDA/Assistance Listing number for HBIIP?
The program is associated with CFDA/Assistance Listing 10.754.
What type of grant program is HBIIP?
It is listed as a discretionary grant program.
Does HBIIP accept applications through Grants.gov?
No. HBIIP does not accept applications through Grants.gov.
Where do applicants apply for HBIIP?
Applicants must use USDA's dedicated Online Application System for HBIIP. Official instructions are provided at https://www.rd.usda.gov/hbiip under the "How To Apply" section and then the "To Apply" tab to request access and submit materials through the correct portal.
Why does it matter that HBIIP is not on Grants.gov?
The program warns that an otherwise eligible applicant can miss the opportunity simply by trying to apply through the wrong platform, so using USDA's dedicated HBIIP Online Application System is essential.
Who is eligible to apply for HBIIP?
Eligible applicants include state, county, city or township governments, and special districts; public and private institutions of higher education; tribal governments and tribal organizations; nonprofits (both 501(c)(3) and non-501(c)(3)); individuals; and for-profit entities including small businesses and other for-profit organizations.
Are for-profit businesses eligible to apply?
Yes. For-profit entities, including small businesses and other for-profit organizations, are listed as eligible applicants.
Are nonprofits eligible to apply?
Yes. Both 501(c)(3) and non-501(c)(3) nonprofits are listed as eligible applicants.
Are tribal governments and tribal organizations eligible?
Yes. Tribal governments and tribal organizations are listed as eligible applicants.
Are educational institutions eligible?
Yes. Public and private institutions of higher education are listed as eligible applicants.
Are individuals eligible to apply?
Yes. Individuals are listed among the eligible applicant types.
What types of facilities and projects does HBIIP support?
The program is geared toward three main facility categories: transportation fueling facilities, fuel distribution facilities, and home heating oil distribution facilities. Funding is intended for implementation-oriented investments that make higher blends available.
What are examples of transportation fueling facilities covered by HBIIP?
Examples include retail fueling stations, convenience stores with fueling, hypermarket fueling stations, and fleet fueling facilities, including rail and marine fleets, as well as similar entities making capital investments.
What are examples of fuel distribution facilities covered by HBIIP?
Examples include terminal operations, depots, and midstream partners (and equivalent operations) that help move fuel from production to end users.
Does HBIIP include home heating oil distribution projects?
Yes. Home heating oil distribution facilities are included, recognizing that higher biodiesel blends can also be used in heating fuel markets.
What kinds of activities does HBIIP funding support?
The funding is intended for infrastructure and equipment improvements directly tied to making higher blends available, with emphasis on tangible buildout and upgrade activities that enable storage, blending, handling, and dispensing of E15+ ethanol blends and B20+ biodiesel blends.
Is HBIIP focused on retail, distribution, or both?
Both. The program targets retail and transportation fueling sites, as well as distribution infrastructure such as terminals, depots, and midstream operations, plus home heating oil distribution.
When was this opportunity created?
The posting indicates a creation date of June 28, 2023.
What was the original closing date listed for this opportunity?
The posting indicates an original closing date of September 30, 2024.
How many awards are expected?
The posting indicates an expected 900 awards.
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