[Federal Register Volume 87, Number 162 (Tuesday, August 23, 2022)]
[Notices]
[Pages 51641-51648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18123]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Rural Business-Cooperative Service

[Docket #: RBS-22-BUSINESS-0006]


Notice of Funding Opportunity for the Higher Blends 
Infrastructure Incentive Program (HBIIP) for Fiscal Year 2022

AGENCY: Commodity Credit Corporation and the Rural Business-Cooperative 
Service, USDA.

ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) and the Rural Business-
Cooperative Service (RBCS or the Agency), a Rural Development agency of 
the United States Department of Agriculture (USDA), announces the 
application window and availability of approximately $100 million in 
competitive grants to eligible entities for activities designed to 
expand the sales and use of renewable fuels under the Higher Blends 
Infrastructure Incentive Program (HBIIP). Cost-share grants of up to 50 
percent of total eligible project costs but not more than $5 million 
will be made available to assist transportation fueling and fuel 
distribution facilities with converting to higher blend friendly status 
for ethanol (i.e., greater than 10 percent ethanol) and biodiesel 
(greater than 5 percent biodiesel) by sharing the costs related to the 
installation, and/or retrofitting, and/or otherwise upgrading of 
dispenser/pumps, related equipment, and infrastructure.

DATES: Applications for HBIIP will be accepted from August 23, 2022 
through November 21, 2022. Applications received after 4:30 p.m. 
eastern time on November 21, 2022 will not be considered.

ADDRESSES: Application Submission: Instructions and additional 
resources, to include an Application Guide, are available at http://www.rd.usda.gov/HBIIP, under the ``How To Apply'' tab.
    Electronic submissions: All applicants must file their application 
electronically through the HBIIP Application portal. Guidance and 
resources for the application portal can be found at the website 
referenced above.
    This funding opportunity will also be posted to https://www.grants.gov.

FOR ADDITIONAL INFORMATION CONTACT:  Jeff Carpenter, telephone (402) 
318-8195, email: [email protected]. Persons with 
disabilities that require alternative means for communication should 
contact the U.S. Department of Agriculture (USDA) Target Center at 
(202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Agency: The Commodity Credit Corporation (CCC) and the 
Rural Business-Cooperative Service (RBCS).
    Funding Opportunity Title: Higher Blends Infrastructure Incentive 
Program (HBIIP).
    Announcement Type: Notice of Funding Opportunity.
    Assistance Listing Number: 10.754.
    Funding Opportunity Number: RBCS-22-01-HBIIP.
    Due Date for Applications: Applications for HBIIP will be accepted 
from August 23, 2022 through November 21, 2022. Applications received 
after 4:30 p.m. eastern time on November 21, 2022 will not be 
considered.
    Administrative: The following considerations apply to this Notice:
    A. Administration Priorities. The Agency encourages applicants to 
consider projects that will advance the following key priorities (more 
details available at https://www.rd.usda.gov/priority-points):
     Assisting rural communities recover economically from the 
impacts of the COVID-19 pandemic, particularly disadvantaged 
communities.
     Ensuring all rural residents have equitable access to 
Rural Development (RD) programs and benefits from RD funded projects.
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.
    B. Targeted Assistance Goal. A targeted assistance goal is also 
established for applicants (owners) owning the fewest number of 
transportation fueling stations/locations (and owning at least one). 
Approximately 40 percent of funds will be made available for 
activities/investments related to upgrading or installing equipment to 
make a transportation fueling facility fully compatible to dispense/
sell higher blends of fuel ethanol and/or biodiesel. The Agency expects 
this Targeted Assistance to be exhausted by applicants owning 10 
fueling stations/locations or fewer.
    Approximately 80 percent of fuel sales in the U.S. is sold by 
convenience store owners. Moreover, about 58 percent of the stores 
selling fuel in the U.S. are ``single store owners.'' A significant 
majority of higher blends fuel is currently sold/dispensed by large 
retail convenience store chains located in the Midwest and along the 
East Coast of the U.S., due in part because these are the types of 
businesses and locations with the highest densities of higher blends 
fueling infrastructure. The Agency established this Targeted Assistance 
Goal as a means to distribute a portion of program funds among a 
greater number of business owners and perhaps indirectly, across a 
broader geographic region, that may not otherwise participate. There is 
an underlying expectation that owners/participants located in 
underserved areas today will be positioned as higher blend fuel market 
leaders tomorrow.
    C. Consideration for Geographic Diversity. A consideration for 
geographical diversity and markets underserved by higher blends is also 
afforded to applicants/participants based on the location of the 
proposed transportation fueling stations/facilities. This consideration 
is intended to work in concert with the Targeted Assistance Goal to 
distribute program funds more broadly across a greater number of states 
that may not otherwise participate.
    D. First Time Applicants. A consideration for first time applicants 
may be given to those without a prior HBIIP acceptance of a Letter of 
Conditions.

Items in Supplementary Information

I. Program Overview
II. Federal Award Information
III. Eligibility Information
IV. Application and Submission Information
V. Application Review Information
VI. Federal Award Administration Information
VII. Federal Awarding Agency Contacts
VIII. Other Information

[[Page 51642]]

I. Program Overview

A. Authority

    This notice is issued pursuant to 62 Stat 1070, and the Commodity 
Credit Corporation Charter Act of 1948 (Charter Act); 15 U.S.C. 714.

B. Program Description

    The purpose of the HBIIP is to significantly increase the sales and 
use of higher blends of ethanol and biodiesel. HBIIP is intended to 
encourage a more comprehensive approach to marketing higher blends by 
sharing the costs related to building and/or retrofitting biofuel-
related infrastructure.
    Under the HBIIP, funds will be awarded to assist transportation 
fueling and fuel distribution facilities in converting their current 
facilities through upgrade or installation of new equipment required to 
ensure all equipment is fully compatible with higher blends of ethanol 
(i.e., greater than 10 percent ethanol) and biodiesel (greater than 5 
percent biodiesel). The program will share the costs related to the 
upgrading of fuel dispensers (gas and diesel pumps) and attached 
equipment, underground storage tank (UST) system components (which 
includes but is not limited to tanks, pumps, ancillary equipment, 
lines, gaskets, and sealants), and other infrastructure required at a 
location to ensure the environmentally safe availability of fuel 
containing ethanol blends greater than 10 percent or fuel containing 
biodiesel blends greater than 5 percent.
    Storing and dispensing E15, E85, or other high blends of ethanol 
for transportation fueling facilities, such as automotive, freight, 
rail, and marine, with equipment that is not compatible with higher 
blends of ethanol fuel can result in leaks and releases that 
contaminate land and groundwater. Older and even some recent existing 
UST systems (which include but are not limited to tanks, pumps, 
ancillary equipment, lines, gaskets, and sealants) are not fully 
compatible with E15 or higher and require modification before storing 
these fuels. Biodiesel blends above B20 have similar requirements; some 
infrastructure changes may even be necessary when storing blends 
greater than B5. This program will expand the number of facilities 
fully compatible with higher blends of ethanol and biodiesel.
    Grants for up to 50 percent of total eligible project costs, but 
not more than $5 million, are made available to: (1) transportation 
fueling facilities, including, but not limited to, local fueling 
stations/locations; convenience stores (CS); hypermarket fueling 
stations (HFS); and fleet facilities, including rail and marine; and 
(2) fuel distribution facilities, including fuel terminal operations; 
midstream operations; and/or distribution facilities.
    CCC is an agency and instrumentality of the United States within 
the Department of Agriculture and operates under the supervision of the 
Secretary of Agriculture. Among the activities that Section 5 of the 
Charter Act authorizes CCC to undertake are actions to:
     Make available materials and facilities required in 
connection with the production and marketing of agricultural 
commodities (other than tobacco), and
     Increase the domestic consumption of agricultural 
commodities (other than tobacco) by expanding or aiding in the 
expansion of domestic markets or by developing or aiding in the 
development of new and additional markets, marketing facilities, and 
uses for such commodities.
    Under this authority, CCC is making available approximately $100 
million in the form of cost-share grants to eligible entities to assist 
with the implementation of activities to expand the infrastructure for 
renewable fuels derived from agricultural products produced in the 
United States. HBIIP will be administered on behalf of CCC under the 
general supervision of RBCS.

II. Federal Award Information

    Type of Awards: Grants.
    Available Funds: Approximately $100 million is made available to 
eligible participants. Of the total amount of available funds, 
approximately $75 million will be made available to transportation 
fueling facilities (including fueling stations; convenience stores; 
hypermarket fueling stations; fleet facilities, including 
transportation, freight, rail and marine; and similar entities with 
capital investments) for eligible implementation activities related to 
higher blends of fuel ethanol greater than 10 percent ethanol, such as 
E15 or higher, and/or activities related to higher blends of biodiesel 
greater than 5 percent, such as B10 or higher; and approximately $25 
million will be made available to transportation fueling facilities and 
fuel distribution facilities (including terminal operations, depots, 
and midstream operations), for eligible implementation activities 
related to higher blends of fuel ethanol greater than 10 percent 
ethanol, such as E15 or higher and biodiesel greater than 5 percent 
biodiesel, such as B10 or higher.
    Award Amounts: Awards to successful applicants will be in the form 
of cost-share grants for up to 50 percent of total eligible project 
costs, but not to exceed $5 million, whichever is less. There is no 
minimum amount for these grants.
    Anticipated Award Date: The Agency anticipates making awards 90 
days after the application deadline.
    Performance Period: The grant period is not to exceed 36-months, 
unless otherwise specified in the Grant Agreement or agreed to by the 
Agency.
    Approximate Number of Awards: The number of awards will depend on 
the number of eligible participants and the total amount of requested 
funds. Based on the Agency's prior experience with this program, it 
expects to make approximately 200 awards. In the unlikely event that 
every successful applicant is awarded the maximum amount available of 
$5 million, 20 awards will be made.

III. Eligibility Information

A. Eligible Applicants

    Owners of transportation fueling and fuel distribution facilities 
located in the United States and its territories may apply for this 
program. Eligible entities would include: fueling stations, convenience 
stores, hypermarket retailer fueling stations, fleet facilities 
(including automotive, freight, rail and marine), and similar entities 
with equivalent capital investments, as well as fuel/biodiesel terminal 
operations, midstream operations, and heating oil distribution 
facilities or equivalent entities.
    Applicants must include all proposed activity under a single 
application. Applicants must own or have the legal right to control all 
site locations included in their application. Application requirements 
and other important information is available on the HBIIP web page 
https://www.rd.usda.gov/hbiip.

B. Eligible Project

    The goal of HBIIP is to increase the market availability of higher 
blends biofuels. To be eligible for this program, a project's sole 
purpose must be for the installation, and/or retrofitting, and/or 
otherwise upgrading of fuel dispensers/pumps, related/attached 
equipment, UST system components, and other infrastructure required at 
a location to ensure the environmentally safe availability of fuel 
containing ethanol blends greater than 10 percent or fuel containing 
biodiesel blends greater than 5 percent.
    An eligible project must conform to all applicable Federal, State, 
Tribal and local regulatory requirements pertaining to:

[[Page 51643]]

    1. Technical Standards and Corrective Action Requirements for 
Owners and Operators of Underground Storage Tanks, 40 CFR parts 280 and 
281;
    2. Regulation of Fuels and Fuel Additives, 40 CFR part 80;
    3. Occupational Safety and Health Standards Subpart H--Hazardous 
Materials Section 106--Flammable Liquids, 29 CFR 1910.106;
    4. Safety and Health Regulations for Construction subpart F--Fire 
Protection and Prevention section 152--Flammable Liquids, 29 CFR 
1926.152; and
    5. Automotive Fuel Ratings, Certification, and Posting, 16 CFR part 
306.
    HBIIP funds may be used for equipment required at a location to 
ensure the environmentally safe availability of fuel containing ethanol 
blends greater than 10 percent or fuel containing biodiesel blends 
greater than 5 percent.
    Since 1988, the Environmental Protection Agency's (EPA) UST 
regulations require fuel to be stored in systems that are compatible 
with the type of fuel being stored. The environmentally safe growth in 
availability of fuels containing higher blends of ethanol or biodiesel 
depends on these fuels being stored and dispensed from UST systems that 
are compatible with E15. Storing and dispensing E15 at gas stations 
with equipment that is not compatible with higher blends of ethanol 
fuel can result in leaks and releases that contaminate land and 
groundwater. Section 280.32 of 40 CFR 280 states that UST owners and 
operators must use an UST system made of or lined with materials that 
are compatible with the substance stored in the UST system.
    Additionally, owners or operators who store regulated substances 
that contain more than 20 percent biodiesel or more than 10 percent 
ethanol, such as 15 percent ethanol or E15, must notify their 
implementing agency 30 days before storing the fuel. Owners and 
operators must also keep records demonstrating that their UST system is 
compatible with the substance stored.
    Demonstrating compatibility of an UST system means identifying what 
equipment is installed as part of your UST system. You must show that a 
component is approved by either the manufacturer of the component or by 
a nationally recognized independent testing laboratory, such as 
Underwriters Laboratory, for use with the fuel to be stored. See 
details about these requirements in regulations issued by EPA at 40 CFR 
280.32.
    Please note that compatibility extends beyond the fuel tank. Owners 
and operators must demonstrate compatibility for the components below 
to store substances containing more than 10 percent ethanol or more 
than 20 percent biodiesel.
    1. Tank;
    2. Piping carrying product from the tank;
    3. Piping containment sumps entered by the piping;
    4. Pumping equipment, including the submersible pump or suction 
pump, depending on the type of system;
    5. Release detection equipment, including automatic tank gauging 
probes, sump sensors, and line leak detectors;
    6. Spill equipment, such as spill buckets, for the tank; and
    7. Overfill equipment, including ball float valves or flapper 
valves.
    The federal UST regulation from EPA does not require owners and 
operators to demonstrate the compatibility of dispensers or associated 
aboveground equipment. However, compatibility requirements for these 
components may exist in other local regulations, such as, but not 
limited to, the fire code. Owners and operators should check for these 
requirements with their implementing agency. HBIIP grant funds may be 
used to upgrade or replace fuel dispensers/pumps, UST system 
components, or other required infrastructure, necessary to make their 
facility fully compatible with higher blends of ethanol or biodiesel. 
Fuel dispensers/pumps, UST system components, and other required 
infrastructure and components must meet the minimum requirements of 
EPA's UST regulations and other Federal, State, and local regulations 
or codes; and, must be approved by either the manufacturer of the 
component or by a nationally recognized independent testing laboratory, 
such as Underwriters Laboratory, for use at a minimum for blends 
containing 25 percent ethanol or 100 percent biodiesel.

C. Cost Sharing or Matching

    There is a matching fund (cost-sharing) requirement of at least $1 
for every $1 in grant funds provided by CCC. Matching funds plus grant 
funds must equal total eligible project cost. Matching funds may be in 
the form of cash or eligible in-kind contributions. Matching funds/
contributions and grant funds may only be used for eligible project 
purposes, including any contributions exceeding the minimum amount 
required. Applicants will certify and demonstrate that any required 
matching funds are available during the grant period and provide 
appropriate documentation with the application, as referenced in 
section IV.B. of this Notice.
    Funds made available under HBIIP may only be used for eligible 
equipment, infrastructure, and related expenses to support the sales 
and use of higher biofuel blends, fuel containing ethanol greater than 
10 percent by volume and/or fuel containing biodiesel blends greater 
than 5 percent by volume.
    Applicants may enter into arrangements with private entities such 
as, but not limited to, commercial vendors of fuels, agricultural 
commodity promotional organizations, Tribes, and other entities 
interested in the renewable fuels in order to secure such non-Federal 
funds or in-kind contributions.
    There are several existing or prior and ongoing State-led programs 
and private sector efforts to help provide funding for higher blend 
dispensers, related equipment, and infrastructure. These programs may 
be included as part of any matching contribution requirement. However, 
the application must show how the HBIIP grant will add to the 
infrastructure that fosters higher blend biofuel sales and use. HBIIP 
funds are intended to provide additional incentives.

D. Eligible Funds

    1. Matching Funds. The applicant is responsible for securing the 
remainder of the total eligible project costs not covered by grant 
funds. Matching funds can be comprised of eligible in-kind 
contributions from third parties and/or cash, however, in-kind 
contributions provided by the applicant cannot be used to meet the 
matching fund requirement. Written commitments for matching funds 
(e.g., Letters of Commitment on lender letterhead, electronic 
communication from a lender, or bank statements) must be submitted with 
the Certification of Matching Funds when the application is submitted. 
The Certification of Matching Funds must be signed by the applicant. 
Funds provided by the applicant in excess of matching funds are not 
matching funds. Unless authorized by statute, other Federal grant funds 
cannot be used to meet a matching funds requirement.
    Up to 10 percent of an applicant's Matching Funds requirement (up 
to 5 percent of total project costs) may be used to pay consumer 
education and/or marketing and/or signage related expenses. HBIIP grant 
funds awarded to transportation fueling stations are intended to assist 
with converting those facilities to ensure full compatibility with 
higher blend fuel through upgrade

[[Page 51644]]

or installation of fuel dispensers, related equipment, and 
infrastructure. And while the contributions of consumer education and/
or marketing and/or signage toward a fuel station's fuel sales are well 
recognized, a very tall sign to display fuel prices does not in any way 
assist a facility with higher blends compatibility. Therefore, the 
Agency determined that while HBIIP grant funds may not be used for 
consumer education and/or marketing and/or signage, matching funds may.
    2. Eligible Project Costs. Eligible Project Costs are only those 
costs incurred after the date that a complete application is submitted 
and that are directly related to the use and purposes of the HBIIP. The 
applicant is cautioned against taking any actions or incurring any 
obligations prior to the Agency completing the environmental review 
that would either limit the range of alternatives to be considered or 
that would have an adverse effect on the environment, such as the 
initiation of construction. If the applicant takes any such actions or 
incurs any such obligations, it could result in project ineligibility. 
Eligible project costs may include:
    (a) Retrofitting of existing, or purchase and installation of new, 
fuel dispensers (gas and/or diesel pumps) and attached equipment, UST 
system components, and other infrastructure required at a location to 
ensure the environmentally safe availability of fuel containing ethanol 
blends greater than 10 percent or fuel containing biodiesel blends 
greater than 5 percent;
    (b) Construction, retrofitting, replacement, and improvements;
    (c) Fees for construction permits and licenses;
    (d) Professional service fees for qualified consultants, 
contractors, installers, and other third-party services; and
    (e) HBIIP grant funds may not be used to pay for expenses related 
to consumer education and/or marketing and/or signage. However, up to 
10 percent of an applicant's matching funds requirement (up to 5 
percent of total project costs) may be used to pay for consumer 
education and/or marketing and/or signage related expenses.

E. Ineligible Project Costs

    Ineligible project costs for HBIIP projects include, but are not 
limited to:
    1. Renewable diesel projects.
    2. Used equipment and vehicles.
    3. Construction or equipment costs that would be incurred 
regardless of the installation of higher blend fuel infrastructure 
shall not be included as eligible project costs. For example, a fuel 
storage tank for a fueling facility constructed during the grant period 
that would have been otherwise installed should not be included in an 
application. USDA believes all new tanks and piping available in the 
market only come in models compatible with higher blends of ethanol and 
biodiesel, so grant funds would not expand the market for higher blends 
by funding such tank or equipment installation. However, other required 
equipment such as fuel dispensers/pumps and other UST system components 
that are still available in traditional and higher blend compatible 
models, the latter at a higher cost, may be considered in this funding 
program.
    4. Business operations that derive more than 10 percent of annual 
gross revenue (including any lease income from space or machines) from 
gambling activity, excluding State or Tribal authorized lottery 
proceeds, as approved by the Agency, conducted for the purpose of 
raising funds for the approved project.
    5. Business operations deriving income from activities of a sexual 
nature or illegal activities.
    6. Purchase of real property or land.
    7. Lease payments.
    8. Any project that creates a Conflict of Interest or an appearance 
of a Conflict of Interest. For purposes of this program conflict of 
interest includes, but is not limited to:
    (a) Distribution or payment of grant, guaranteed loan funds, and 
matching funds or award of project construction contracts to an 
individual owner, partner, or stockholder, or to a beneficiary or 
immediate family of the applicant when the recipient will retain any 
portion of ownership in the applicant's or borrower's project. Grant 
and matching funds may not be used to support costs for services or 
goods going to, or coming from, a person or entity with a real or 
apparent conflict of interest.
    (b) Assistance to employees, relatives, and associates. The Agency 
will process any requests for assistance under this subpart in 
accordance with 7 CFR part 1900, subpart D.
    (c) Member/delegate clause. No member of or delegate to Congress 
shall receive any share or part of this grant or any benefit that may 
arise there from; but this provision shall not be construed to bar, as 
a contractor under the grant, a publicly held corporation whose 
ownership might include a member of Congress.
    9. Funding of political or lobbying activities.
    10. To pay off any Federal direct or guaranteed loan or any other 
form of Federal debt. Any incurred expense, equipment purchase, or paid 
service prior to the date a complete application is submitted.
    11. Any expense associated with applying for this program, 
including environmental reviews and requirements related to it.
    12. Any expense associated with reporting results and/or outcomes 
during the disbursement, performance, and servicing portions of this 
program.
    The U.S. Department of Agriculture Departmental Regulations and 
Laws that contain other compliance requirements are referenced in 
paragraphs VI. and VIII. of this Notice. Applicants who are found to 
be/have been in violation of applicable Federal Law/statutes will be 
deemed ineligible.

IV. Application and Submission Information

    Applicants seeking to participate in this program must submit 
applications in accordance with this Notice.

A. Electronic Application and Submission

    Applications must be submitted electronically using the HBIIP 
secure-server portal. Instructions and resources for completing the 
online application are available on the HBIIP web page under the ``How 
To Apply'' tab, https://www.rd.usda.gov/hbiip.

B. Content and Form of Application Submission

    Applicants must submit complete applications by the date identified 
in the DATES section of this Notice. Applications must contain all 
parts necessary for the RBCS to determine applicant and project 
eligibility, conduct the technical evaluation, calculate a priority 
score, rank, and compete the application, as applicable, in order to be 
considered. All applications determined to be insufficient for these 
purposes shall be deemed incomplete and will neither be competed nor 
receive funding.
    1. For Higher Blend Implementation Activities related to 
transportation fueling stations/facilities, the HBIIP Online 
Application is comprised of the following elements:
    (a) SF 424, Application for Federal Assistance;
    (b) HBIIP Project Worksheet with Priority Scoring Criteria: 
Transportation Fueling Stations/Facilities;
    (c) SF 424C, Budget Information--Construction Programs;
    (d) HBIIP Project Technical Report;
    (e) Signed Certification of Matching Funds;

[[Page 51645]]

    (f) Confirmation of Environmental Information to Agency or 
Environmental Information; and
    (g) SF 424D, Assurances--Construction Programs signed by applicant 
entity.
    2. For Higher Blend Implementation Activities related to fuel 
distribution facilities, an HBIIP Online Application is comprised of 
the following elements:
    (a) SF 424, Application for Federal Assistance;
    (b) HBIIP Project Worksheet with Priority Scoring Criteria: Fuel 
Distribution Facilities;
    (c) SF 424C, Budget Information--Construction Programs;
    (d) HBIIP Project Technical Report;
    (e) Signed Certification of Matching Funds;
    (f) Confirmation of Environmental Information to Agency or 
Environmental Information; and
    (g) SF 424D Assurances--Construction Programs signed by the 
applicant entity.
    3. Instructions and resources for completing the online application 
are available on the HBIIP web page under the ``How To Apply'' tab, 
https://www.rd.usda.gov/hbiip. Applicants and their authorized/rightful 
users will be required to obtain an E-Auth Identification and obtain 
access to the secure portal. The application process requires the 
ability to both view and generate PDFs (Portable Document Files). The 
use of a Web browser such as Chrome or its equivalent is highly 
encouraged.

C. Unique Entity Identifier and System for Award Management

    1. Each applicant applying for loan or grant funds must (A) be 
registered in the System for Award Management (SAM) before submitting 
its application and (B) provide a valid Unique Entity Identifier (UEI) 
in its application, unless determined exempt under 2 CFR 25.110.
    2. Applicant must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    3. Applicant must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    4. The Agency will not make an award until the applicant has 
complied with all applicable UEI and SAM requirements. If an applicant 
has not fully complied with the requirements by the time the Agency is 
ready to make an award, the Agency may determine that the applicant is 
not qualified to receive a Federal award and use that determination as 
a basis for making a Federal award to another applicant.

D. Submission Dates and Times

    The deadline date for applications to be received to be considered 
for funding is specified in the DATES section at the beginning of this 
notice.
    After electronically submitting an application through the HBIIP 
website, the applicant will receive an automated acknowledgement, 
specifying submission date and time, from the HBIIP online application 
system. In order to be considered for funds under this Notice, 
applications must be deemed complete and must be received by the secure 
portal located on the HBIIP web page at https://www.rd.usda.gov/hbiip 
by the deadline.

E. Intergovernmental Review

    Executive Order (E.O.) 12372, Intergovernmental Review of Federal 
Programs, applies to this program. This E.O. requires that Federal 
agencies provide opportunities for consultation on proposed assistance 
with State and local governments. Many states have established a Single 
Point of Contact (SPOC) to facilitate this consultation. Instructions 
for completing this required element and a list of States that maintain 
a SPOC are available in the HBIIP online application.

F. Funding Restrictions

    The following funding restrictions apply to applications submitted 
under this Notice.
    1. Only one HBIIP application may be submitted per HBIIP applicant. 
An application may request HBIIP assistance for more than one location 
that is owned and/or legally controlled by the applicant entity. An 
HBIIP applicant/application may receive one and only one award in this 
competition.
    2. If it is determined that an applicant is affiliated with another 
entity that has also applied, then the maximum grant award applies to 
all affiliated entities as if they applied as one applicant. An 
affiliate is an entity controlling or having the power to control 
another entity, or a third party or parties that control or have the 
power to control both entities.
    3. Previous acceptance of an HBIIP Letter of Conditions cannot be 
withdrawn and resubmitted under this Notice, unless there is a change 
in scope of work approved by RBCS (HBIIP) staff.
    4. Underground Storage Tanks and Systems.
    (a) New construction. Fueling Stations/Locations/facilities 
constructed during the grant period are restricted from receiving HBIIP 
grant funds for USTs. RBCS has determined that tanks would be required 
of any new fueling stations/locations/facility regardless of any 
commitment to market higher blends. However, other required equipment 
such as fuel dispensers/pumps and other UST system components that are 
still available in traditional and higher blend compatible models, the 
latter at a higher cost, may be considered in this funding program.
    (b) Existing fueling stations that require upgraded, and/or 
retrofitted and/or additional USTs may request assistance of up to 50 
percent of total eligible project costs or up to $2,500,000, whichever 
is the lesser. Eligible equipment includes, but is not limited to: the 
tank, piping, piping containment sumps, underground pumping equipment, 
including the submersible pump or suction pump, release detection 
equipment, spill equipment (spill buckets), overfill equipment, fuel 
dispensers/pumps, or other equipment related to the storage system.
    5. HBIIP grant funds may not be used to pay for expenses related to 
consumer education, marketing, and/or signage. However, up to 10 
percent of an applicant's Matching Funds (up to 5 percent of total 
project costs) may be used to pay for education/marketing/signage 
related expenses.
    6. No HBIIP grant funds may be used to pay for any incurred expense 
prior to the submission of a complete application.

G. Multiple Facilities

    While only one HBIIP application may be submitted per applicant 
under this Notice, an application may request assistance for multiple 
facilities/locations that are owned and/or legally controlled by the 
applicant entity. Section ``E.3. Funding Restrictions,'' advises on 
instances where more than one application is submitted by one or more 
affiliates of an entity.

H. Compliance With Other Federal Statues and Other Submission 
Requirements

    1. Environmental information. For the RBCS to consider an 
application complete, the application must include all environmental 
review documents with supporting documentation in accordance with 7 CFR 
part 1970 and as referenced in section IV.B of this Notice. Any 
required environmental review must be completed prior to obligation of 
funds. Applicants are advised to contact RBCS to determine 
environmental requirements as soon as practicable to ensure adequate 
review time.

[[Page 51646]]

    Applicants should also submit to RBCS the compatibility 
verification of equipment to be funded. EPA regulations found in 40 CFR 
280.32 require demonstrating compatibility of systems storing fuel 
containing greater than 10 percent ethanol or greater than 20 percent 
biodiesel, so RBCS collecting this information in advance is not an 
additional burden for applicants. It will ensure that grant funds are 
used for purposes that expand the environmentally safe availability of 
fuel containing higher blends of ethanol and biodiesel. More 
information can be found in this June 2019 compliance advisory from the 
EPA Office of Underground Storage Tanks: https://www.epa.gov/sites/production/files/2019-06/documents/compliance-advisory-ust-regs-06-2019.pdf.
    2. Original signatures. The RBCS reserves the right to request/
require that the applicant provide original signatures on forms 
submitted electronically.
    3. Transparency Act Reporting. All recipients of Federal financial 
assistance are required to report information about first-tier sub-
awards and executive compensation in accordance with 2 CFR part 170. If 
an applicant does not have an exception under 2 CFR 170.110(b), the 
applicant must then ensure that it has the necessary processes and 
systems in place to comply with the reporting requirements to receive 
funding.
    4. Race, ethnicity, and gender. The RBCS is requesting that each 
applicant provide race, ethnicity, and gender information about the 
applicant. The information will allow the Agency to evaluate its 
outreach efforts to under-served and under-represented populations. 
Applicants are encouraged to furnish this information with their 
applications but are not required to do so. An applicant's eligibility 
or the likelihood of receiving an award will not be impacted by 
furnishing or not furnishing this information.
    5. Other Federal Statutes. The applicant must certify to compliance 
with other Federal statutes and regulations by completing the Financial 
Assistance General Certifications and Representations in SAM, 
including, but not limited to the following:
    (a) 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
title VI of the Civil Rights Act of 1964. Civil Rights compliance 
includes, but is not limited to the following:
    (i) Collect and maintain data provided by ultimate recipients on 
race, sex, and national origin and ensure that ultimate recipients 
collect and maintain this data. Race and ethnicity data will be 
collected in accordance with Office of Management and Budget (OMB) 
Federal Register Notice, ``Revisions to the Standards for the 
Classification of Federal Data on Race and Ethnicity'' (published 
October 30, 1997 at 62 FR 58782). Sex data will be collected in 
accordance with title IX of the Education Amendments of 1972. These 
items should not be submitted with the application but should be 
available upon request by RBCS.
    (ii) The applicant and the ultimate recipient must comply with 
Title VI of the Civil Rights Act of 1964, title IX of the Education 
Amendments of 1972, the Americans with Disabilities Act (ADA), section 
504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 
1975, Executive Order 12250, and 7 CFR part 1901, subpart E.
    (b) 2 CFR part 417--Governmentwide Debarment and Suspension (Non-
procurement), or any successor regulations.
    (c) 2 CFR parts 200 and 400 (Uniform Assistance Requirements, Cost 
Principles and Audit Requirements for Federal Awards), or any successor 
regulations.
    (d) Subpart B of 2 CFR part 421, which adopts the Governmentwide 
implementation (2 CFR part 182) of the Drug-Free Workplace Act.
    (e) Executive Order 13166, ``Improving Access to Services for 
Persons with Limited English Proficiency.'' For information on limited 
English proficiency and agency-specific guidance go to https://www.lep.gov/.
    (f) Federal Obligation Certification on Delinquent Debt.

V. Application Review Information

A. Criteria

    A priority score will be added to complete applications deemed 
eligible to compete. Given the purpose of the HBIIP, higher priority 
will be given to projects deemed to significantly increase the sales 
and use of higher blends of ethanol and biodiesel on a gallons per 
dollar of requested funds basis. Priority scoring and ranking of 
applications will be a function of the following criteria:
    1. For Higher Blend Implementation Activities related to 
transportation fueling facilities.
    (a) Annual sales volume for the past 3 years (2019-21) or projected 
sales for fueling stations constructed during the grant period, for all 
fuels including E10 and/or B5;
    (b) The incremental increase in higher blend fuel volume attributed 
to:
    (i) The proposed change in percentage of refueling positions 
offering E15 and/or B20 or higher blends (the greater percentage of 
higher blend fuel refueling positions, the greater the higher blend 
fuel volume attribution);
    (ii) The proposed new ratio number of fueling positions offering 
E15 and/or B20 relative to the number of fueling positions offering E10 
and/or B5 (the greater the ratio of higher blend fuel refueling 
positions relative to E10 and/or B5, the greater the higher blend fuel 
volume attribution);
    (iii) The proposed ratio number of fueling positions offering E85 
relative to the number of fueling positions offering E10 (the greater 
the ratio of E85 refueling positions relative to E10, the greater the 
higher blend fuel volume attribution);
    (iv) The proposed change in the number of fueling stations with at 
least one E15 fueling position (the greater the number of fueling 
stations, the greater the higher blend fuel volume attribution);
    (v) Whether the applicant is an owner of 10 fueling stations or 
fewer (if yes, a Targeted Assistance Goal, higher blend fuel volume 
attribution);
    (vi) The proposed number of fueling stations located along an 
interstate highway corridor;
    (vii) The proposed number of fueling stations located as the sole 
station (within a 1-mile radius) in an area;
    (viii) The proposed number of fueling stations located in areas 
under consideration for Geographic Diversity:
    1. The New England States of Maine, Vermont, New Hampshire, 
Massachusetts, Connecticut, Rhode Island; and/or
    2. The Western States of Alaska, Arkansas, Arizona, California, 
Colorado, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, 
Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, 
South Dakota, Texas, Utah, Washington, Wyoming; and/or
    3. The U.S. Territories of American Samoa, Guam, the Northern 
Mariana Islands, Puerto Rico, and the U.S. Virgin Islands
    (c) A ``Matching Funds'' investment/commitment to higher blends 
signage and/or marketing is proposed (non-zero investment yields 
greater higher blend fuel volume attribution);
    (d) The total amount of requested funds.
    The HBIIP online application, ``Project Worksheet with Priority 
Scoring Criteria for Transportation Fueling Stations/Facilities,'' is 
interactive and designed to indicate an applicant's priority score 
based on--HBIIP activities (e.g., fuel dispensers, related equipment, 
and infrastructure

[[Page 51647]]

installations), Administrator's geographic diversity priorities, 
targeted assistance goals (if applicable), and the amount of requested 
funds. Applicants may directly influence their priority score by the 
activities they select in the worksheet and by the amount of grant 
funds they request.
    Transportation fueling stations/facilities applications should take 
special care to provide evidentiary documentation in support of their 
proposed activities in the HBIIP Project Technical Report. In the event 
of suspect, overstated, or otherwise unsubstantiated claims, the Agency 
reserves the right to adjust an application's priority score 
accordingly.
    2. For Higher Blend Implementation Activities related to fuel 
distribution facilities.
    (a) Annual throughput volume for past 3 years (2019-2021), for all 
fuels;
    (b) The incremental increase in throughput of higher blend fuel, as 
substantiated by:
    (i) Validated demand--demand projections/forecasts;
    (ii) Market drivers--the underlying economic and technological 
forces that compel your customers to purchase your products and 
services;
    (iii) Documented incentives--known national, regional, state, and 
local policy and market incentives available to the business;
    (iv) Project sustainability--environmental, social, and economic 
reasons the business will thrive beyond HBIIP;
    (v) Investments on consumer education and marketing; and
    (vi) Partnerships--significant long-term supplier and/or customer 
arrangements and/or agreements;
    (c) The total amount of requested funds.
    Fuel distribution facility applications must provide evidentiary 
documentation in support of their throughput projections in the HBIIP 
Project Technical Report. In the event of suspect, overstated, or 
otherwise unsubstantiated claims, the Agency reserves the right to 
adjust an application's priority score accordingly.

B. Review and Selection Process

    All complete applications will be competed/ranked in accordance 
with section V.A., as specified above. Applicants may work to complete 
the online application until the deadline specified in the DATES 
section of this Notice.
    Due to the competitive nature of this program, applications 
receiving the same priority score will be competed/ranked based on 
submittal date. The submittal date is the date the RBCS receives a 
complete application. A complete application contains all information 
requested by RBCS and is sufficient to allow the determination of 
eligibility, score, rank, and compete the application for funding, 
subject to funds available. Incomplete applications will not be 
competed and will not receive funding.

C. Administrator Points

    The RBCS retains the discretion to award priority to applications 
that support HBIIP policy goals and that specifically promote economic 
development to improve life in rural areas that are most in need:
    1. A Consideration for First Time Applicants. Whether an applicant 
had funding obligated through this program previously.
    2. Administration Priorities. As per the Overview section of this 
Notice.

D. Other Requirements

    In order to be considered for funds, complete applications must be 
received by the deadline specified in the DATES section of this Notice.
    1. Insufficient funds. If available funds are insufficient to fund 
the total amount of an application:
    (a) The applicant will be notified and given the option to lower 
the grant request and accept the remaining funds. If the applicant 
agrees to lower the grant request, the applicant must certify that the 
purposes of the project will be met and provide the remaining total 
funds needed to complete the project.
    (b) If two or more applications have the same priority score and 
the same submittal date, both applicants will be notified and given the 
option to lower the grant requests and accept the remaining funds. If 
an applicant agrees to lower its grant request, the applicant must 
certify that the purposes of the project will be met and provide the 
remaining total funds needed to complete the project.
    2. Award considerations. All award considerations will be on a 
discretionary basis. In determining the amount of an award, the RBCS 
will consider the amount requested, subject to the amount being the 
least of:
    (a) the maximum cost-share amount of 50 percent of total eligible 
project costs, or a lesser amount when deemed appropriate;
    (b) the maximum award amount of $5 million; or
    (c) available funds.
    3. Notification of funding determination. Applicants will be 
informed in writing by the RBCS as to the funding determination of the 
application.

VI. Federal Award Administration Information

A. Federal Award Notices

    HBIIP grants will be administered in accordance with Departmental 
Regulations, and as otherwise specified in this Notice.
    Applicants selected for funding will receive a signed notice of 
Federal award containing instructions on requirements necessary to 
proceed with execution and performance of the award.
    Applicants not selected for funding will be notified in writing and 
informed of any review and appeal rights. Awards to successfully 
appealed applications will be limited to available funding.

B. Administrative and National Policy Requirements

    Additional requirements that apply to grantees selected for this 
program can be found in the Grants and Agreements regulations of the 
Department of Agriculture codified in 2 CFR parts 180, 200, 400, 415, 
417, 418, 421; 2 CFR parts 25 and 170; and 48 CFR 31.2.
    In addition, all recipients of Federal financial assistance are 
required to report information about first tier subawards and executive 
compensation (see 2 CFR part 170). You will be required to have the 
necessary processes and systems in place to comply with the Federal 
Funding Accountability and Transparency Act of 2006 (Pub. L. 109- 282) 
reporting requirements (see 2 CFR 170.200(b), unless you are exempt 
under 2 CFR 170.110(b)). More information on these requirements can be 
found at http://www.rd.usda.gov/HBIIP. The following additional 
requirements apply to grantees selected for this program:
    1. Grant Agreement--RD 4280-2 Rural Business-Cooperative Service 
Financial Assistance Agreement;
    2. Letter of Conditions;
    3. Form RD 1940-1, ``Request for Obligation of Funds;''
    4. Form RD 1942-46, ``Letter of Intent to Meet Conditions;'' and
    5. Use Form SF 271, ``Request for Advance or Reimbursement.''

C. Reporting

    After grant approval and through grant completion, grantees will be 
required to periodically provide the following, as indicated:
    1. A SF-425, ``Federal Financial Report,'' and a project 
performance report will be required on a semiannual basis (due 30 
working days after end of the semiannual period). For the purposes of 
this grant, semiannual

[[Page 51648]]

periods end on March 31st and September 30th. The project performance 
reports shall include the elements prescribed in the Grant Agreement 
which, for fueling stations, will include point of sale reporting for 
up to 5 years post project completion and, for fuel distribution 
facilities, will include reporting of throughput volumes of all fuels 
including higher blend fuels.
    2. A final project and financial status report, as required per 2 
CFR 200.344, ``Closeout'', within 90 days after the expiration or 
termination of the grant.
    3. Provide project outcome/performance reports and final 
deliverables. Reported data will be used for program and policy 
evaluation. The proprietary nature and confidentiality of information 
collected from program participants is specified in 7 U.S.C. 2276.

VII. Federal Awarding Agency Contacts

    For further information contact: Jeff Carpenter: telephone (402) 
318-8195, email: [email protected]. Persons with 
disabilities that require alternative means for communication should 
contact the USDA Target Center at (202) 720-2600 (voice).

VIII. Other Information

A. Congressional Review Act

    Pursuant to Subtitle E of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (also known as the Congressional Review Act or 
CRA); 5 U.S.C. 801 et seq., this action meets the threshold for a major 
rule, as defined by 5 U.S.C. 804(2), because it will result in an 
annual effect on the economy of $100,000,000 or more. Accordingly, 
there is a 60-day delay in the effective date of this action. 
Processing will not begin until the opening of the application intake 
system. Therefore, the 60-day delay required by the CRA is not expected 
to have a material impact upon the administration and/or implementation 
of the HBIIP.

B. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the information collection requirements associated with 
the HBIIP, as covered in this NOFO, have been approved by the Office of 
Management and Budget (OMB) under OMB Control Number 0570-0072. This 
funding announcement does not create any new information collection 
requirements.

C. Nondiscrimination Statement

    In accordance with Federal civil rights laws and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Mission Areas, agencies, staff offices, employees, and institutions 
participating in or administering USDA programs are prohibited from 
discriminating based on race, color, national origin, religion, sex, 
gender identity (including gender expression), sexual orientation, 
disability, age, marital status, family/parental status, income derived 
from a public assistance program, political beliefs, or reprisal or 
retaliation for prior civil rights activity, in any program or activity 
conducted or funded by USDA (not all bases apply to all programs). 
Remedies and complaint filing deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service 
at (800) 877-8339.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/usda-program-discrimination-complaint-form.pdf, from 
any USDA office, by calling (866) 632-9992, or by writing a letter 
addressed to USDA. The letter must contain the complainant's name, 
address, telephone number, and a written description of the alleged 
discriminatory action in sufficient detail to inform the Assistant 
Secretary for Civil Rights (ASCR) about the nature and date of an 
alleged civil rights violation. The completed AD-3027 form or letter 
must be submitted to USDA by:

    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].

Marcus Graham,
Acting Executive Vice President, Commodity Credit Corporation.

Karama Neal,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2022-18123 Filed 8-22-22; 8:45 am]
BILLING CODE 3410-XY-P