USDA announces $537 million in HBIIP funding, works with EPA on RFS volumes

U.S. Secretary of Agriculture Brooke Rollins announced March 31 that USDA will release obligated funding under the Higher Blends Infrastructure Incentive Program for 543 projects totaling $537 million in 29 states.  

This includes new projects approved within the first 100 days of the Trump administration and advances President Trump’s Jan. 20 executive order on unleashing American energy. 

Rollins made the announcement during an event at Elite Octane in Atlantic, Iowa—a state that leads the nation in ethanol and biodiesel production, with 42 ethanol plants capable of producing over 4.7 billion gallons annually and 10 biodiesel plants with the annual production capacity of 416 million gallons. 

“President Trump is honoring our commitment to America’s farmers, ranchers and small businesses, especially here in Iowa where corn and soy growers are crucial to supporting ethanol and biodiesel production,” Rollins said. “Under the president’s leadership, we are moving away from the harmful effects of misguided climate policies like the Green New Deal. Instead, USDA will deploy energy investments that prioritize the needs of our rural communities. Through HBIIP, we will expand access to domestic, homegrown fuels, which will increase good-paying jobs for hardworking Americans, restore rural prosperity and strengthen our nation’s energy security.” 

USDA said it is aggressively exploring additional ways to unleash American energy and incentivize the production and use of homegrown U.S. biofuels, including working alongside U.S. EPA to develop renewable volume obligations (RVOs) that support the biofuel industry, as well as supporting EPA’s review of any potential emergency fuel waivers to allow the nationwide year-round sale of E15.  

“In the current agricultural economy, U.S. biofuels remain a bright spot and tremendous opportunity,” USDA said.  

Established at USDA Rural Development during Trump’s first term, HBIIP helps expand the production of domestic biofuels by assisting fueling stations install the pumps, storage containers and other necessary infrastructure needed to offer biofuel options at the pump. 

HBIIP investments directly impact American farmers.  

The expansion of biofuel infrastructure broadens the availability of fuels like E15, E85 and B20 made from American-made agricultural commodities.  

Additionally, this program protects American farmers from retaliatory trade practices, diversifies the nation’s energy supply, creates jobs and supports economic growth in rural communities. 

The Iowa Biodiesel Board’s executive director, Grant Kimberley, spoke with Rollins about the urgency of the Trump administration finalizing a Renewable Fuel Standard proposal.  

The industry is asking for a biomass-based diesel volume of 5.25 billion gallons in 2026.   

“Iowa’s biodiesel producers are at a standstill due to lingering regulatory delays on the RFS and the crucial biodiesel tax credit,” Kimberley said. “With instability in international markets, soybean farmers and biodiesel producers need a strong domestic market. Setting volumes at 5.25 billion gallons for 2026 will go a long way toward biodiesel production resuming at full speed.”     

Rollins committed to instructing her team to work with other agencies and parties on moving forward with increased volumes in the RFS volume proposal in the near future, Kimberley said. 

With U.S. soybean crushers investing $6 billion in additional processing capacity, the industry is well-positioned to meet the 5.25-billion-gallon target.  

The U.S. biodiesel and renewable diesel industry has a production capacity exceeding 6 billion gallons, with more than 4.75 billion gallons produced in 2024. 

On the HBIIP program announcement, Kimberley said, “This continued investment will help ensure a stronger future for American agriculture while providing drivers with more affordable, homegrown fuel options.”  

He reiterated that infrastructure investments must be matched with strong policies that support growth.