$210 million investment to raise number of biofuel pumps in US
The U.S. Department of Agriculture (USDA) has announced a new plan to hand out around $210 million in grants across the country to fund nearly 5,000 new biodiesel gas pumps in 1,500 gas stations.
Through the Biofuel Infrastructure Partnership (BIP), the USDA has partnered with 21 states to double the number of service station pumps supplying renewable fuels. Last May, the USDA announced the availability of $100 million in grants for biofuel pumps. Together with the commitments from state and private entities, the BIP now has an investment budget of $210 million.
"This major investment in renewable energy infrastructure will give Americans more options that not only will suit their pocketbooks, but also will reduce our country's environmental impact and bolster our rural economy," said Agriculture Secretary Tom Vilsack.
The final awards being announced today are estimated to expand infrastructure by nearly 5,000 pumps at over 1,400 fueling stations across 21 states.
A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy that consumers can purchase. The new partnership will increase the number of pumps, storage and related infrastructure that offer higher blends of ethanol, such as E15, E85, and even intermediate combination blends.
The corn ethanol industry is the largest biofuel producer in the country, with production increasing from about 1.6 billion gallons in 2000 to just over 14 billion gallons in 2014, stimulating economic activity in rural communities, according to the USDA.