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

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

Publication: Federal Register
Signing Official: Karama Neal
Department: Department of Agriculture
Date: 23 August 2022

[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: HigherBlendsGrants-access@usda.gov. 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: HigherBlendsGrants-apply@usda.gov. 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: program.intake@usda.gov.

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