USDA to Invest Up to $100 Million to Boost Infrastructure for Renewable Fuel Use, Aiming to Double Number of Higher Blend Renewable Fuel Pumps
Posted by admin on Jun. 3, 2015 / Bio Fuels, Clean Fuels Funding, Clean Fuels Events - National/Regional, Clean Fuels Infrastructure, Clean Cities and Communities, Awards & Grants, Emissions & Fuel Economy / Subscribe 0
The U.S. Department of Agriculture plans to administer up to $100 million in funding to get more ethanol at the gas pump. Specifically, the USDA will issue competitive grants to match funding for state-led projects to test and evaluate innovative approaches to market higher blends of renewable fuel, such as E15 and E85. States that area able to provide greater than a one-to-one ratio in funding will receive higher consideration.
This funding also ensures that American corn and soybean producers to expand their marketing opportunities. A combination of factors has negatively affected this sector recently, including less demand for feed due to avian influenza and lower commodity prices. In lieu of these troubles, the USDA hopes that their partnership can guarantee renewable fuel infrastructure is in place for consumers.
Currently, the typical gas pump can only deliver fuel with 10 percent ethanol, which limits how much renewable fuel consumers use to fill up their vehicles. This partnership will help fund the installation of fuel pumps capable of supplying higher blends of renewable fuel. The USDA aims to double the number of fuel pumps capable of supplying higher blends of renewable fuel.
The United States is the world’s largest exporter of ethanol. In addition, the U.S. is a leader in the export of high-quality distiller’s dried grains (DDG), which is a byproduct of ethanol production used for livestock and poultry feed.
By increasing the use of higher-blend renewable fuel, the project holds the potential to expand markets for farmers and diversify their rural energy portfolios, support rural economic growth, create jobs, and give consumers more affordable, cleaner-burning fuel at the pump. It could also assist in reducing the country’s dependence on foreign oil.
To formally launch this infrastructure partnership, USDA will post a Notice of Solicitation of Applications in June.
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