Sioux Falls, SD – Jan. 30, 2020 - Today, the American Coalition for Ethanol (ACE) submitted comments in response to the United States Department of Agriculture (USDA) request for information (RFI) on a Higher Blends Infrastructure Incentive Program (HBIIP).
The USDA is exploring options to expand domestic ethanol and biodiesel availability and is seeking information on opportunities to consider infrastructure projects to facilitate increased sales of higher biofuel blends (E15 or higher).
According to USDA, this effort will build on biofuels infrastructure investments and experience gained through the Biofuels Infrastructure Partnership (BIP).
With over 40 years of petroleum wholesale distributing, convenience store marketing and operations experience, and involvement educating fuel retailers about ethanol, ACE Senior Vice President and Market Development Director Ron Lamberty participated in USDA’s stakeholder meeting to discuss a HBIIP program and provide insight on how the program should be implemented to create a larger market for ethanol at a low cost per gallon over the long-term.
Among other suggestions, ACE made the following recommendations that USDA should consider in the final HBIIP to expand the geographical availability of higher blends and encourage more widespread participation by small retailers:
“Following the November USDA meeting, we talked to some of the small retailers and groups who adamantly opposed E15 and didn’t like the first BIP program to find out what they would like to see in a new program,” Lamberty said.
“As expected, the main objections to adding E15 to their fuel product slate were beliefs E15 isn’t compatible with existing equipment, new infrastructure is too expensive, and only big convenience store chains can afford to offer it.”
To read ACE’s full response to the RFI: HBIIP that addresses these objections and provides a draft infrastructure program, click here.
For more information, please contact Katie Fletcher at 605-306-6107.