View Rule

The Higher Blends Infrastructure Program (HBIIP) is a program designed to increase the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure. The program should increase availability of domestic biofuels and give Americans additional cleaner fuel options at the pump.

RBCS is proposing a rule to codify the policies and procedures for the program in the Code of Federal Regulations, as this program has a significant impact on climate change which is an administration priority.  The proposed rule is intended to seek comment on codification of existing authorities provided through statutory language on eligibility requirements, types and terms of funding, program requirements and processing procedures. 

RBCS intends to conduct public engagement to hear from stakeholders and potential applicants about what they would like to see in the regulation as well as what has worked and what has not worked in the past. This program has been implemented for multiple years, so the public should have some input on what has worked and what has not in the past. RBCS is looking for suggestions and input both from those who have applied in the past and those that did not, why they opted not to and if the program could do anything to encourage new applicants.

Targeted primary stakeholders include owners of fueling station owners, convenience store, and fleets, including auto, truck, rail and marine, and their industry associations. Secondary stakeholders include equipment manufacturers, distributors, and installers; State Energy Offices and State Departments of Agriculture; biofuel producers and farmers/agricultural producers and their industry associations; EPA, DOT, DOE, and other Federal agencies; and other stakeholders and groups with related interests such as environmental and health.

Statement of Need:

The purpose HBIIP is to increase significantly the sales and use of higher blends of ethanol and bio diesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure. Currently, the Rural Business-Cooperative Service (RBCS) implements the program through a Notice of Funding Opportunity. This program was initially implemented in fiscal year 2020 through a Notice of Funding Opportunity and under the Commodity Credit Corporation (CCC) authority. In fiscal year 2023 this was included in IRA and under RBCS authority and a Notice of Funding Opportunity was yet again issued. RBCS is proposing a rule to codify the policies and procedures for the program in the Code of Federal Regulations as this program has a significant impact on climate change which is an administration priority.

Summary of the Legal Basis:

This regulatory action is not required by statute or court order; however, the underlying statutes authorizing RBCS to create these regulations are 5 U.S.C. 301 and 7 U.S.C. 1989. 

Alternatives:

The alternative to rulemaking is to continue to operate the program through issuance of a Notice of Funding Opportunity to announce application windows and applicable requirements for the program.

Anticipated Costs and Benefits:

The Agency does not expect the new regulation to result in additional costs to applicants or the government.

Risks:

At this time, the Agency has not completed risk analysis for this action.