[Federal Register Volume 88, Number 123 (Wednesday, June 28, 2023)]
[Notices]
[Pages 41876-41884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13483]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket #: RBS-23-BUSINESS-0008]


Notice of Funding Opportunity for the Higher Blends 
Infrastructure Incentive Program (HBIIP) for Fiscal Years 2023 and 2024

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Rural Business-Cooperative Service (RBCS or the Agency), a 
Rural Development agency of the United States Department of Agriculture 
(USDA), announces the availability of approximately $450 million, under 
section 22003 of the Inflation Reduction Act of 2022, 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 75 percent of 
total eligible project costs, but not more than $5 million, will be 
made available to assist transportation fueling facilities 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 fuel 
dispenser or pumps and related equipment, storage tank system 
components, and other required infrastructure. All applicants are 
responsible for expenses incurred in developing their applications.

DATES: The application windows for enrollment in the HBIIP will take 
place quarterly for five quarters, starting July 1, 2023, through 
September 30, 2024, with the option for a sixth application window if 
funding has not been exhausted. The application window will close at 
4:30 p.m. Eastern time on the last day of each quarter.

ADDRESSES: 
    Application Submission: Instructions and additional resources, 
including an Application Guide, are available at Higher Blends 
Infrastructure Incentive Program [bond] Rural Development (https://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 FURTHER INFORMATION CONTACT: Jeff Carpenter at [email protected], 
HBIIP Manager, RBCS, Rural Development, United States Department of 
Agriculture, 1400 Independence Avenue SW, Mail Stop 3201, Room 5801-
South, Washington, DC 20250; or call (402) 437-5554. 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); or the 711 Relay Service.

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Awarding Agency Name: Rural Business-Cooperative Service 
(RBCS).
    Funding Opportunity Title: Higher Blends Infrastructure Incentive 
Program (HBIIP).
    Announcement Type: Notice of funding opportunity.
    Funding Opportunity Number: RBCS-2023-2024-01-HBIIP.
    Assistance Listing Number: 10.754.
    Dates: The application windows for enrollment in the HBIIP will 
take place quarterly for five quarters, starting July 1, 2023, through 
September 30, 2024, with the option for a sixth application window if 
funding has not been exhausted. The application window will close at 
4:30 p.m. Eastern time on the last day of each quarter.
    Rural Development Key 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 through 
more and better market opportunities and through improved 
infrastructure;
     Ensuring all rural residents have equitable access to 
Rural Development (RD) programs and benefits from RD funded projects; 
and
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.

A. Program Description

1. Purpose of the Program
    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 Section 22003 of the Inflation Reduction Act of 2022, RBCS is 
making

[[Page 41877]]

available approximately $450 million in the form of cost-share grants 
to eligible entities to assist with infrastructure improvements to 
increase the sale and use of agricultural commodity-based fuels.
2. Statutory and Regulatory Authority
    This notice is issued pursuant to section 22003 of the Inflation 
Reduction Act of 2022 (Pub. L. 117-169).
    (a.) 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 D.2 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.
    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. A compatibility verification 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 and https://www.epa.gov/sites/default/files/2014-05/documents/bulk_storage_container_integrity-testing-factsheet.pdf.
    (b) 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.
    (c) 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:
    (1) 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 recipients on race, sex, 
and national origin. 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 maintained and made available upon 
request by RBCS.
    (ii) The applicant 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.
    (2) 2 CFR part 417 Governmentwide Debarment and Suspension (Non-
procurement), or any successor regulations.
    (3) 2 CFR parts 200 and 400 (Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards), or any 
successor regulations.
    (4) Subpart B of 2 CFR part 421, which adopts the Governmentwide 
implementation (2 CFR part 182) of the Drug-Free Workplace Act.
    (5) 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/.
    (6) Federal Obligation Certification on Delinquent Debt.
3. Application of Awards
    Under the HBIIP, funds will be awarded to assist transportation 
fueling facilities 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, fuel storage tank 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 newer existing 
underground storage tank (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 75 percent of total eligible project costs, but 
not more than $5 million, are made available to: (1) owners, including 
affiliated entities, of 10 or fewer transportation fueling facilities, 
including local fueling stations/locations; convenience stores; and 
hypermarket fueling stations; and (2) owners of home heating oil 
distribution facilities who have at least 80 percent of their average 
annual throughput volume coming from home heating oil, including 
affiliated entities. 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. Grants for up to 50 
percent of total eligible project costs, but not more than $5 million, 
are made available to owners of: (1) more than 10 transportation 
fueling facilities, including, but not limited to, local fueling 
stations/locations; convenience stores; and hypermarket fueling 
stations; (2) fleet facilities including rail and marine; and (3) fuel 
distribution facilities, including fuel terminal operations; midstream 
operations; and/or distribution facilities including home heating oil 
distribution facilities with more than 80 percent of their average 
annual throughput volume coming from home heating oil.

B. Federal Award Information

    Type of Awards: Grants.
    Fiscal Year Funds: FY 2023-FY2024.
    Available Funds: Approximately $450 million is made available to 
eligible

[[Page 41878]]

participants, $90 million each calendar quarter commencing July 1, 
2023. Of the total amount of funds available each quarter, 
approximately $67.5 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 five percent, such as B20 or higher; and approximately $18 
million will be made available to 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 five percent biodiesel, such as B20 or higher. 
Additionally, up to $4.5 million will be made available to home heating 
oil distribution facilities for eligible implementation activities 
related to higher blends of biodiesel greater than five percent, such 
as B20 or higher. Unused funds may be reallocated.
    Award Amounts: Awards to successful applicants will be in the form 
of cost-share grants not to exceed $5 million. There is no minimum 
amount for these grants.
    Anticipated Award Date: The Agency anticipates making awards within 
90--180 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.
    Renewal or Supplemental Awards: None.
    Type of Assistance Instrument: Grant Agreement.
    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 175 awards per quarter. In the unlikely 
event that every successful applicant is awarded the maximum amount 
available of $5 million, approximately 20 awards will be made.

C. Eligibility Information

1. Eligible Applicants
    Owners of transportation fueling facilities and owners of fuel 
distribution facilities may apply for this program. Eligible facilities 
must be located in the United States and its territories and 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. Applicants may apply for 
and will only receive funding associated with implementation activities 
for one or more transportation fueling facilities or one or more fuel 
distribution facilities. Applications including combinations of 
transportation fueling facility implementation activities and fuel 
distribution facility implementation activities are ineligible. 
Application requirements and other important information is available 
on the HBIIP web page https://www.rd.usda.gov/hbiip.
2. Cost Sharing or Matching
    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.
    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.
    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 or installation of fuel dispensers, 
related equipment, and infrastructure. Although 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 be used to pay for consumer education and/
or marketing and/or signage related expenses.
3. Other
(a) Eligible Project
    The goal of HBIIP is to significantly 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, fuel storage tank 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.
    (A) An eligible project must conform to all applicable Federal, 
State, Tribal and local regulatory requirements pertaining to:
    1. Technical Standards and Corrective Action Requirements for 
Owners and

[[Page 41879]]

Operators of Underground Storage Tanks, 40 CFR parts 280 and 281;
    2. Spill Prevention, Control and Countermeasure Plan (SPCC) 
Program, 40 CFR part 112;
    3. Regulation of Fuels and Fuel Additives, 40 CFR part 80;
    4. Occupational Safety and Health Standards Subpart H--Hazardous 
Materials Section 106--Flammable Liquids, 29 CFR 1910.106;
    5. Safety and Health Regulations for Construction Subpart F--Fire 
Protection and Prevention Section 152--Flammable Liquids, 29 CFR 
1926.152; and
    6. 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 part 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.
    (B) 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. These components include:
    1. Tanks;
    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.
(b) Eligible Funds
    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:
    (i) Retrofitting of existing, or purchase and installation of new, 
fuel dispensers (gas and/or diesel pumps) and attached equipment, fuel 
storage tank 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;
    (ii) Construction, replacement, and improvements;
    (iii) Fees for construction permits and licenses;
    (iv) Professional service fees for qualified consultants, 
contractors, installers, and other third-party services; and
    (v) HBIIP grant funds may not be used to pay for expenses related 
to higher blend consumer education and/or higher blend marketing and/or 
higher blend 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 higher blend consumer education and/or higher blend 
marketing and/or higher blend signage related expenses. The Awardee is 
encouraged to display USDA standard infrastructure investment signage, 
available for download from the Agency, during construction of the 
Project. Expenditures for such signage shall be a permitted eligible 
cost of the Project.
(c) Ineligible Project Costs
    Ineligible project costs for HBIIP projects include, but are not 
limited to:
    1. Renewable diesel projects.
    2. Sustainable aviation fuel (SAF) projects.
    3. Used equipment and vehicles.
    4. 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

[[Page 41880]]

higher cost, may be considered in this funding program.
    5. 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.
    6. Business operations deriving income from activities of a sexual 
nature or illegal activities.
    7. Purchase of real property or land.
    8. Lease payments.
    9. Any project that creates a Conflict of Interest or an appearance 
of a Conflict of Interest which, for purposes of this program includes, 
but is not limited to:
    (a) Distribution or payment of a 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 a grant awarded pursuant to HBIIP or 
any benefit that may arise therefrom; 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.
    10. Funding of political or lobbying activities.
    11. 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.
    12. Any expense associated with applying for this program, 
including environmental reviews and requirements related to it.
    13. Any expense associated with reporting results and/or outcomes 
during the disbursement, performance, and servicing portions of this 
program.
    14. Transportation infrastructure not on location where eligible 
biofuels are blended, stored, supplied, or distributed.
    The U.S. Department of Agriculture Departmental Regulations and 
federal laws that contain other compliance requirements are referenced 
in paragraphs F, H, and I of this notice. Applicants who are found to 
be/have been in violation of applicable Federal Law/statutes will be 
deemed ineligible.

D. Application and Submission Information

1. Address To Request Application Package
    Applicants seeking to participate in this program must submit 
applications in accordance with this notice.
    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 ``To 
Apply'' tab, https://www.rd.usda.gov/programs-services/energy-programs/higher-blends-infrastructure-incentive-program#to-apply.
2. 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, 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;
    (f) Confirmation of Environmental Information to HBIIP inbox 
([email protected]) or Environmental Information; and
    (g) SF 424D, Assurances--Construction Programs signed by applicant 
entity (if signing by Power of Attorney, a legal, fully executed copy 
of the Power of Attorney must be provided when submitting the 
application for it to be considered complete).
    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 HBIIP inbox 
([email protected]) or Environmental Information; and
    (g) SF 424D Assurances--Construction Programs signed by the 
applicant entity (if signing by Power of Attorney, a legal, fully 
executed copy of the Power of Attorney must be provided when submitting 
the application for it to be considered complete).
    3. Instructions and resources for completing the online application 
are available on the HBIIP web page under the ``To Apply'' tab, https://www.rd.usda.gov/programs-services/energy-programs/higher-blends-infrastructure-incentive-program#to-apply. Applicants and their 
authorized/rightful users will be required to obtain a USDA 
eAuthentication and obtain access to the secure portal. The application 
process requires the ability to both view and generate PDFs (Portable 
Document Format). The use of a Web browser such as Chrome or its 
equivalent is highly encouraged.
3. System for Award Management and Unique Entity Identifier
    (a) At the time of application, each applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR part 25 (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25). To register in SAM, 
entities will be required to obtain a Unique Entity Identifier (UEI). 
Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    (b) Each 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.
    (c) Each applicant must ensure it completes the Financial 
Assistance General Certifications and Representations in SAM.

[[Page 41881]]

    (d) Each applicant must provide a valid UEI in its application, 
unless determined exempt under 2 CFR 25.110 (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-A/section-25.110).
    (e) The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. 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.
4. 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 applying electronically 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#:~:text=What%20is%20the%20Higher%20Blends,derived%20from%20U.S.%20
agricultural%20products by the deadline. Application instructions can 
be found at https://www.rd.usda.gov/programs-services/energy-programs/higher-blends-infrastructure-incentive-program#to-apply.
5. 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. Applications from 
Federally recognized Indian tribes are not subject to this requirement.
6. Funding Restrictions
    The following funding restrictions apply to applications submitted 
under this notice.
    1. Only one HBIIP application may be submitted by an HBIIP 
applicant per quarterly application window. An application may request 
HBIIP assistance in a single application 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 each 
quarterly application window not to exceed a total of $15 million of 
funding made available under Section 22003 of the Inflation Reduction 
Act of 2022.
    2. If it is determined that an applicant is affiliated with another 
entity that has also applied, then the maximum grant award and total 
Inflation Reduction Act funding assistance 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. Fuel Storage Tanks and Systems.
    (a) New construction. Fueling stations/locations/facilities 
constructed during the grant period are restricted from receiving HBIIP 
grant funds for fuel storage tanks. 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 storage tank 
system components that are still available in traditional and higher 
blend compatible models, the latter at a higher cost, may be funded 
under HBIIP.
    (b) Existing fueling stations. Existing fueling stations that 
require upgraded, and/or retrofitted and/or additional fuel storage 
tanks 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, 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 
higher blend consumer education and/or higher blend marketing and/or 
higher blend 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 higher blend consumer education and/or higher blend 
marketing and/or higher blend signage related expenses. The Awardee is 
encouraged to display USDA standard infrastructure investment signage, 
available for download from the Agency, during construction of the 
Project. Expenditures for such signage shall be a permitted eligible 
cost of the Project.
    6. No HBIIP grant funds may be used to pay for any incurred expense 
prior to the submission of a complete application.
7. Other Submission Requirements
    (a) 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.
    (b) Original signatures. The RBCS reserves the right to request/
require that the applicant provide original signatures on forms 
submitted electronically.

E. Application Review Information

1. 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:
    For Higher Blend Implementation Activities related to 
transportation fueling facilities.
    (a) Annual sales volume for the past 3 calendar years 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

[[Page 41882]]

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 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.
    For Higher Blend Implementation Activities related to fuel 
distribution facilities.
    (a) Annual throughput volume for past 3 years, 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. Letters of support 
do not meet this requirement and are not needed.
2. Review and Selection Process
    All complete applications will be competed/ranked in accordance 
with Section E.1., 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 availability. Incomplete applications will not be 
competed and will not receive funding.
3. Discretionary Points
    The RBCS retains the discretion to award a 10 percent scoring 
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:
    (a) Consideration for First Time Applicants. Whether an applicant 
had funding obligated through this program previously. A consideration 
for first time applicants may be given to those without a prior HBIIP 
acceptance of a Letter of Conditions. This includes:
    (i) First time applicants.
    (ii) Applicants who have not previously been selected for HBIIP 
funding.
    (iii) Applicants who have not previously had HBIIP funding 
obligated.
    (b) Administration Priorities. As per the Rural Development Key 
Priorities outlined in the Overview section of this notice along with 
the additional program goals provided below.
    (c) Targeted Assistance Goal. A targeted assistance goal is set for 
applicants (owners) owning the fewest number of transportation fueling 
stations/locations (and owning at least one). Approximately 50 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 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 54 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 to distribute a portion of program funds among a greater number of 
business owners and, across a broader geographic region, to increase 
participation. There is an underlying expectation that owners/
participants located in underserved areas today will be positioned as 
higher blend fuel market leaders tomorrow.
    (d) Consideration for Geographic Diversity. A consideration for 
geographical diversity and markets underserved by higher blends is also 
afforded to applicants/participants

[[Page 41883]]

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.
4. Other Requirements
    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 Federal grant share percentage 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. Each Applicant will be 
informed in writing by the RBCS as to the funding determination of the 
application.

F. Federal Award Administration Information

1. 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.
2. 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.
3. Reporting
    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). Each applicant 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 the 
applicant is exempt under 2 CFR 170.110(b)). More information on these 
requirements can be found at https://www.rd.usda.gov/programs-services/energy-programs/higher-blends-infrastructure-incentive-program#to-apply.
    The following additional items will need to be executed by grantees 
selected for this program in order to receive HBIIP funds:
    1. Letter of Conditions, awarding an HBIIP grant to the applicant 
and specifying certain conditions and requirements of the grant award
    2. Form RD 1942-46, ``Letter of Intent to Meet Conditions;''
    3. Grant Agreement--RD 4280-2 Rural Business-Cooperative Service 
Financial Assistance Agreement;
    4. Form RD 1940-1, ``Request for Obligation of Funds;'' and
    5. Form SF 271, ``Outlay Report and Request for Reimbursement for 
Construction Programs.''
    After grant approval and through grant completion, grantees will be 
required to periodically provide the following, as indicated:
    (a) A SF-425, ``Federal Financial Report,'' and a project 
performance report will be required on a semiannual basis (due 30 
calendar days after end of the semiannual period). For the purposes of 
this grant, semiannual 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.
    (b) A final project and financial status report, as required per 2 
CFR 200.344, ``Closeout'', within 120 days after the expiration or 
termination of the grant.
    (c) 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.

G. Federal Awarding Agency Contacts

    For further information contact: Jeff Carpenter at [email protected], 
HBIIP Manager, RBCS, Rural Development, United States Department of 
Agriculture, 1400 Independence Avenue SW, Mail Stop 3201, Room 5801-
South, Washington, DC 20250; or call (402) 437-5554. 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) or the 711 Relay Service.

H. Buy America, Build America Act

    Funding to Non-Federal Entities. Awardees that are Non-Federal 
Entities, defined pursuant to 2 CFR 200.1 as any State, local 
government, Indian tribe, Institution of Higher Education, or nonprofit 
organization, shall be governed by the requirements of Section 70914 of 
the Build America, Buy America Act (BABAA) within the IIJA. USDA's 
guidance is available online at https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver.

I. Other Information

    1. 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, the Agency will not take action on 
applications until 60 days have lapsed from notification to Congress.
    2. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35), the information 
collection requirements associated with HBIIP programs, as covered in 
this notice, have been approved by the Office of Management and Budget 
(OMB) under OMB Control Number 0570-0072.

[[Page 41884]]

    3. National Environmental Policy Act. All recipients under this 
notice are subject to the requirements of 7 CFR part 1970.
    4. Federal Funding Accountability and Transparency Act. All 
applicants, in accordance with 2 CFR part 25, must be registered in SAM 
and have a UEI number as stated in Section D.3. of this notice. All 
recipients of Federal financial assistance are required to report 
information about first-tier sub-awards and executive total 
compensation in accordance with 2 CFR part 170.
    5. Nondiscrimination Statement. In accordance with Federal civil 
rights laws and 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 711 Relay Service.
    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/ad-3027.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].

Karama Neal,
Administrator, Rural Business-Cooperative Service, USDA Rural 
Development.
[FR Doc. 2023-13483 Filed 6-27-23; 8:45 am]
BILLING CODE 3410-XY-P