IRA Section 22003 – Biofuel Infrastructure and Market Expansion Grants

Section 22003 appropriates $500 million to USDA for grants to projects that increase the sale and use of agricultural commodity-based fuels through infrastructure improvements for blending, storing, supplying, or distributing biofuels. Infrastructure improvements are:

1) installing, retrofitting, or otherwise upgrading fuel dispensers, pumps, or related equipment, storage tank system components, and other infrastructure required to dispense certain biofuel blends to increase sales of fuels with high levels of commodity-based ethanol and biodiesel that satisfy other requirements determined by the Department;
2) building and retrofitting home heating oil distribution centers or equivalent entities and distribution systems for ethanol and biodiesel blends.

Grants cannot be provided for projects that involve installing, retrofitting, or otherwise upgrading transportation infrastructure that is not on location where biofuels are blended, stored, supplied, or distributed.

Section 22003 of the IRA specifies that the federal share for any grant awarded for infrastructure improvements must not exceed 75% of the total project cost. No eligible entity may receive more than 10% of the appropriated funds, unless there are insufficient eligible applicants. USDA may not, however, impose further restrictions on the amount of funding to be provided to any applicant.

The funding appropriated under section 22003 of the IRA shall remain available until September 30, 2031.