Klobuchar, Smith Announce New Federal Funding to Increase Access to Biofuels

WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) announced significant federal funding from the U.S. Department of Agriculture to install E15 dispensers at fueling stations located in Iowa, Illinois, Minnesota, Nebraska, and South Dakota to increase the availability of domestic biofuels and give drivers cleaner, more affordable fuel options. Gas stations and distribution facilities in Alexandria, Annandale, Belgrade, Crookston, Hoffman, Moorhead, Paynesville, and Sauk Rapids, Minnesota, will receive funding. The Department is making the awards through the Higher Blends Infrastructure Incentive Program (HBIIP), which was made possible with funding from Klobuchar and Senator Joni Ernst’s (R-IA) Biofuel Infrastructure and Agricultural Product Market Expansion Act, which was included as part of a larger legislative package in 2022.

“Domestically produced biofuel strengthens our energy independence, supports farmers, and cuts costs for families,” said Klobuchar. “My bill with Senator Ernst, the Biofuel Infrastructure and Agricultural Product Market Expansion Act, unlocked this funding to help bring affordable biofuels to more local gas stations and help drivers save money.” 

“Biofuels offer us a clean, renewable, and homegrown pathway to transition away from fossil fuels,” said Smith. “Minnesota is already a leader in biofuels production, and this investment from the Inflation Reduction Act will further spur an industry that America relies on for energy independence, drivers rely on for lower gas prices, and farmers rely on for new streams of income. We’re reducing harmful emissions while creating more economic opportunity in rural areas.”

These grants will reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers, and storage tanks. Blending ethanol into gasoline has helped reduce fuel costs by approximately 25 percent.