Millions in Federal Funding Released for Fuel Dispenser Upgrades

flex fuel funding

Millions in Federal Funding Released for Fuel Dispenser Upgrades

Update (10/20/20): 

The USDA has begun doling out the funds from HBIIP to increase the use of biofuels in America. 

So far, the agency has released $22 million to fund biofuel projects in California, Florida, Iowa, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, Ohio, Utah and Wisconsin.

  • In Iowa, United Farmers Cooperative will use a $93,000 grant to replace six dispensers and two storage tanks at a fueling station. This project is estimated to increase ethanol sales by nearly 300,000 gallons per year.
  • In Wisconsin, BP Kenosha Travel Plaza LLC will use a $378,000 grant to replace and install 20 dispensers and a storage tank at two fueling stations. This project is estimated to increase ethanol sales by 1.6 million gallons per year.
  • Southeast Petro Distribution will use a $3.5 million grant to replace and install 113 dispensers and 48 storage tanks at 26 fueling stations in Florida, Georgia, Tennessee, South Carolina and Alabama. This investment is estimated to increase ethanol sales by 1.7 million gallons per year.

USDA plans on announcing the remaining HBIIP investments in the coming weeks.


Considering getting into higher fuel blends of ethanol like E15 or E85? Make sure you’re taking advantage of the free money from the Higher Blends Infrastructure Incentive Program (HBIIP).

The U.S. Department of Agriculture is targeting businesses with 10 or fewer sites with the program to encourage more sales and use higher blends of ethanol and biodiesel blends.

E15, E85, and other high blends of ethanol must be stored in specialized compatible equipment. HBIIP funds are being made available to help ease the costs related to upgrading fuel dispensers (gas and diesel pumps) and attached equipment, underground storage tanks, and more.

The number and size of the HBIIP grants will depend on the successful number of applicants. The agency expects to give out about 150 awards, providing assistance to 1,500 locations.

The number and size of the HBIIP grants will depend on the successful number of applicants. The agency expects to give out about 150 awards, providing assistance to 1,500 locations.

Need help navigating clean fuels?

Here’s an article to help you decide which blends are right for your business.

Applications for HBIIP funds are being accepted now through August 13, 2020 11:59 p.m. ET.

You can find an extensive FAQ from the USDA here. 

Click here to learn how to apply.