Biofuel Infrastructure Grant Program
The MASBDA Biofuel Infrastructure Grant Program (BIP) was created to increase the availability of higher blends of ethanol and biodiesel in Missouri by partnering with private entities receiving funding through USDA Rural Development’s Higher Blends Infrastructure Investment Program (HBIIP). Eligible costs are only those costs incurred during the grant period and that are directly related to the use and purposes of the HBIPP. Eligible Project Costs may include:
- Retrofitting of existing, or purchase and installation of new, fuel dispensers (gas and/or diesel pumps) and attached equipment, underground 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;
- Construction, retrofitting, replacement, and improvements;
- Fees for construction permits and licenses;
- Professional service fees for qualified consultants, contractors, installers, and other third-party services.
How Does the Program Work?
Entities will be eligible to apply for up to 25% of their required cash match to the USDA HBIIP, not to exceed $200,000 per entity. Total project costs for Missouri locations must match those submitted to the HBIIP.
The maximum grant award is per business entity regardless of the number of Missouri locations included in an application.
Applicants must include all proposed activity under a single application.
Final award amount will be contingent upon notice of funding from the USDA HBIIP, and copy of executed contract between the approved entity and USDA. Final award amount cannot exceed the contingent approval amount.
Amounts of for 1) Gallons of all fuels sold, 2) Total gallons of E10 fuel sold, 3) Total gallons of E15 fuel sold, 4) Total gallons of E85 fuel sold, 5) Total gallons of diesel fuel sold, and 6) total fuel sales revenue will be required as a part of the application to establish a baseline of production and sales. In the case this is a new facility to be constructed during the grant period, MASBDA will set the baseline of throughput and sales at 0.
- Application deadline is July 1, 2020.
- Applications will be considered by the MASBDA board the third week of July, and those entities approved will receive a contingent award letter no later than July 31 to be included with their USDA HBIIP application prior to the submission deadline of 11:59 p.m., August 13, 2020.
- Project time frame cannot exceed 18 months, but may be extended up to 12 months, with documentation of an extension approved by USDA.
- Application format – a formal application has not been released for the BIP; however the application information will be based on the same information already compiled for the HBIIP application.
Who is Eligible?
Eligible entities mirror those eligible for the HBIIP, and include—fueling stations, convenience stores, hypermarket retailer fueling stations, fleet facilities, and similar entities with equivalent capital investments, as well as fuel/biodiesel terminal operations, midstream partners, and heating oil distribution facilities or equivalent entities.
- 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, underground 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.
Grant Amount and Terms
- Payment will be made based on actual invoices presented to MASBDA for payment. Before requesting funds from MASBDA, the entity must provide proof of prior equivalent cash expended toward the project. For example, before requesting $25,000 from MASBDA, the entity must provide proof of a minimum of $25,000 has been expended on approved infrastructure.
- Payment may be made directly to vendors, or on a reimbursement basis to the grant recipient, upon proof of payment (cancelled check; $0 balance invoice.)
- Reporting: Annual reports for the three immediate years following full grant disbursement on product throughput for 1)Gallons of all fuels sold, 2)Total gallons of E10 fuel sold, 3)Total gallons of E15 fuel sold, 4)Total gallons of E85 fuel sold, 5)Total gallons of biodiesel fuel sold, and 6) total fuel sales revenue.
- Matching Funds: Applicants must provide funding source(s) and amount(s) of matching funds (both cash match and in-kind) mirroring the information submitted to USDA, documenting funds are committed to complete the proposed project.
Ineligible project costs for HBIIP projects include, but are not limited to:
- Used equipment and vehicles;
- Construction or equipment costs that would be incurred regardless of the installation of HB fuel infrastructure shall not be included as eligible project costs.
- Real property/land;
- Lease payments;
- Expenses incurred prior to the signing of the HBIIP contract with USDA are not eligible project costs.
Application Fee: A non-refundable application fee of $150 must accompany applications up to $25,000, and an application fee of $300 must accompany applications of $25,000 and over.
Administration Fee: For funded grants, an administrative fee of 10% of the amount of grant award will be assessed at the time of contract execution with MASBDA, after confirmation of USDA HBIIP award. The administration fee will be included in the grant award, but will not impact the level of funding available to the recipient and will not be included in the $200,000 maximum grant award amount.
Both forms must be completed by July 1 for the application to be considered.
For more information contact MASBDA at 573-751-2129 or email@example.com.