USDA Higher Blends Infrastructure Incentive Program (HBIIP)
USDA Agricultural Marketing Service
Up to $5M (50% of costs)
Upgrade your fuel station for higher ethanol blends
Competitive grants for fuel retailers, fuel terminal operators, and other fuel distribution infrastructure owners to install or upgrade equipment for selling higher ethanol blends (E15, E25, E85) and higher biodiesel blends (B20+). Grants cover up to 50% of eligible costs. USDA's strategy: more blender pumps at more gas stations = stronger domestic ethanol and biodiesel market = better prices for corn and soybean farmers. If you own or operate a fuel station or distribution terminal, this is the grant for your biofuel infrastructure upgrade.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $10,000 – $5,000,000
- Realistic amount
- Individual fuel station awards typically range $10,000–$200,000 for blender pump installation and tank upgrades. Large d…
- Deadline
- No active competition — most recent round was FY2022 (543 projects, $537M). No FY2025 or FY2026 NOFO announced as of May 2026. Monitor rd.usda.gov and grants.gov CFDA 10.178 for new announcements.
- Status
- between-intakes
- States
- Nationwide
- Payment model
- reimbursement
Who qualifies
- Fuel retailers: owners or operators of fueling stations selling motor fuel to the public (independent stations, chains, convenience stores with fuel)
- Fuel distribution facilities: owners or operators of fuel terminals, pipelines, storage facilities, and blending facilities
- Biodiesel distributors: entities in the biodiesel distribution chain
- Applicant must own or have a long-term lease on the infrastructure being upgraded
- Project must involve installation of qualified equipment for higher ethanol blends (E15 or higher) or higher biodiesel blends (B20 or higher)
- Must demonstrate financial ability to complete the 50% match
- SAM.gov UEI registration required
- Applicant must not be currently suspended or debarred from federal programs
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Blender pump purchase and installation (certified to dispense E15, E25, E85)
- Underground storage tank retrofits or replacements to accommodate ethanol blends
- Aboveground storage tank installations for higher blends
- Dispensing equipment upgrades (hoses, nozzles, meters certified for higher ethanol concentrations)
- Terminal blending equipment for wholesale distribution
- Metering and monitoring systems for higher blend dispensing
- Permitting and engineering fees directly related to eligible equipment installation
- Installation labor for eligible equipment
- Signage required for regulatory compliance (E15 labeling)
Ineligible expenses
- Equipment for E10 or lower ethanol blends (standard gasoline blending — must be E15 or higher for ethanol, B20 or higher for biodiesel)
- Retail canopy, building renovation, or cosmetic improvements
- Land acquisition
- Working capital or operating expenses
- Vehicles
- Costs incurred before the date of USDA conditional commitment
- Fuel purchases (ethanol or biodiesel commodity)
- Marketing or advertising expenses
How to apply
-
1
Confirm program cycle is active and download NOFO
Check ams.usda.gov/hbiip or grants.gov (search CFDA 10.178) to confirm an active NOFO. As of May 2026, no active cycle. When a cycle opens, download the NOFO immediately — it specifies eligible equipment categories, documentation requirements, and scoring criteria which vary by round.
~7 hrs
-
2
Register in SAM.gov and Grants.gov
Obtain or renew your SAM.gov UEI registration (7–10 days for new registrations). Register on Grants.gov. Complete these steps before the NOFO deadline — missing SAM registration is a common administrative rejection cause.
~7 hrs
-
3
Obtain equipment quotes and develop project plan
Get formal quotes from tank equipment suppliers, pump manufacturers, and installers for the eligible equipment. For fuel stations: blender pumps, tank liners, compatible hoses and fittings. For terminals: blending systems, metering equipment, storage upgrades. The project plan should show current infrastructure, proposed changes, and expected higher-blend sales volume.
~7 hrs
-
4
Prepare application and budget
Application includes: project narrative describing current infrastructure and proposed upgrades, detailed budget with 50% matching funds documentation, equipment specifications and quotes, evidence of ownership or lease, and business financial capacity documentation. Applications are merit-reviewed based on projected impact (gallons of higher blends sold per year).
~7 hrs
-
5
Submit and await award decision
Submit electronically via Grants.gov before the deadline. USDA AMS reviews and scores applications based on projected higher-blend sales volume, geographic distribution, cost-effectiveness, and organizational capacity. Award decisions typically announced 4–6 months after deadline.
~7 hrs
Industry & certifications
NAICS codes: 447110, 447190, 424710, 424720, 493190
Scoring heavily weights projected annual gallons of higher blends sold — stations near highways or in states with E15 mandates can project higher volumes and rank better. Partner with your fuel supplier for volume projections.
Deadline & timing
HBIIP has run in multiple rounds but with significant gaps between cycles. The program was well-funded under the 2018 Farm Bill and saw large rounds in FY2020, FY2021, and FY2022. As of May 2026, no active NOFO is posted. The 2024 Farm Bill extension or reauthorization and annual appropriations will determine whether future rounds proceed. Program is legally authorized but currently between active funding cycles.
Programs that stack well
- USDA Rural Energy for America Program (REAP)
- Epa Renewable Fuel Standard Credits
- State Biofuel Incentive Programs
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.