Notice of Funds Availability for the Higher Blends Infrastructure Incentive Program (HBIIP) for Fiscal Year 2020
| Published date | 05 May 2020 |
| Record Number | 2020-09685 |
| Section | Notices |
| Court | Commodity Credit Corporation,Rural Business-cooperative Service |
Federal Register, Volume 85 Issue 87 (Tuesday, May 5, 2020)
[Federal Register Volume 85, Number 87 (Tuesday, May 5, 2020)]
[Notices]
[Pages 26656-26665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09685]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Rural Business-Cooperative Service
Notice of Funds Availability for the Higher Blends Infrastructure
Incentive Program (HBIIP) for Fiscal Year 2020
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), a Rural Development agency of the United
States Department of Agriculture (USDA), announce the availability of
up to $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
[[Page 26657]]
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: The Agency will finalize the application window for enrollment
in the Higher Biofuels Infrastructure Incentive Program by future
notice in the Federal Register and Grants.gov. subject to the opening
of the electronic application system.
ADDRESSES:
Application Submission: The application system for electronic
submissions will be available at http://www.rd.usda.gov/HBIIP.
Electronic Submissions: Electronic submissions of applications will
allow for the expeditious review of an Applicant's proposal. As a
result, all Applicants must file their application electronically.
FOR ADDITIONAL INFORMATION CONTACT: Anthony Crooks: Telephone (202)
205-9322, email: [email protected]. 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).
SUPPLEMENATARY INFORMATION: Pursuant to the Congressional Review Act
(CRA; 5 U.S.C. 801 et seq.), the Office of Information and Regulatory
Affairs in the Office of Management and Budget designated this action
as 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. Application processing (reviews, competition, selection,
awards, etc.) will not begin until after the application deadline 90
days after the application window date is announced by notice in the
Federal Register. 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.
Overview
Federal Agency: The Commodity Credit Corporation (CCC) and the
Rural Business-Cooperative Service (RBCS), (USDA).
Funding Opportunity Title: Notice of Funds Availability for the
Higher Blends Infrastructure Incentive Program (HBIIP) for Fiscal Year
2020.
Announcement Type: Notice of Funds Availability.
Catalog of Federal Domestic Assistance (CFDA) Number: 10.754.
Catalog of Federal Domestic Assistance (CFDA) Title: The Higher
Blends Infrastructure Incentive Program (HBIIP).
Due Date for Applications: The Agency will finalize the application
window for enrollment in the Higher Biofuels Infrastructure Incentive
Program by notice in the Federal Register and Grants.gov. subject to
future opening of the electronic application system.
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
I. Program Overview
A. Background
Prior to publishing this Notice, the CCC and RBCS (the Agency)
determined it to be in the public interest to solicit informal comments
from the public and interested stakeholders on a wide range of issues
on information and options for fuel ethanol and biodiesel
infrastructure, innovation, products, technology, and data derived from
all HBIIP processes that drive economic growth, promote health, and
increase public benefit.
A Request for Information (RFI), was published in the Federal
Register (85 FR 2699) on January 16, 2020. Information received from
the public to the RFI was intended to inform the CCC and RBCS as well
as private sector and other stakeholders with interest in and expertise
relating to such a promotion. Fifty-seven (57) comments were submitted
from the public which served to inform the Agency on an array of
issues, including but not limited to: (a) Fueling stations, convenience
stores, hypermarket fueling stations, fleet facilities, and similar
entities with capital investments; (b) equipment providers, equipment
installers, certification entities and other stakeholder/manufacturers
(both upstream and down); (c) fuel distribution centers, including
terminals and depots; and (d) those performing innovative research,
and/or developing enabling platforms and applications in manufacturing,
energy production, and agriculture. Additionally, on February 5, 2020,
RBCS convened a Federal Inter-Agency Task Force of experts with
relevant knowledge, including technical experts from the Environmental
Protection Agency and Department of Energy/National Renewable Energy
Laboratory, to assist with the review of the public comments and
provide recommendations for the guiding principles of this Notice. And,
on February 28, 2020, an ``Announcement of Future Competitive Grant
Funds Availability for Higher Blends Infrastructure Incentive Program
(HBIIP) for Fiscal Year 2020,'' was published in the Federal Register
(85 FR 2699) to alert prospective participants and stakeholders of
Agency intentions to publish this Notice.
B. Program Description
The purpose of the HBIIP is to increase significantly 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 out biofuel-related
infrastructure.
Under the HBIIP, funds will be awarded to assist transportation
fueling and fuel distribution facilities to convert their facilities
through upgrade or installation of 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) (HB fuel). The program will share the costs related to the
upgrading of fuel dispensers (gas and diesel pumps) and attached
equipment, underground 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 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. Older and even some recent existing UST systems (which
includes but is 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
[[Page 26658]]
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 vehicle fueling
facilities, including, but not limited to, local fueling stations/
locations, convenience stores (CS), hypermarket fueling stations (HFS),
fleet facilities, and fuel terminal operations, midstream partners,
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
CCC 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 up to $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
A. Catalog of Federal Domestic Assistance (CFDA) Number 10.754
Catalog of Federal Domestic Assistance (CFDA) Title: The Higher
Blends Infrastructure Incentive Program (HBIIP).
B. Funds Available
Under HBIIP up to $100 million is made available to eligible
participants. Of the total amount of available funds, approximately $86
million will be made available to transportation fueling facilities
(including fueling stations, convenience stores, hypermarket fueling
stations, fleet facilities, 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 approximately $14 million will be made available to
transportation fueling facilities and fuel distribution facilities
(including terminal operations, depots, and midstream partners), for
eligible implementation activities related to higher blends of
biodiesel greater than 5 percent biodiesel, such as B20 or higher.
C. 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 facilities
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.
This policy goal is rooted in Agency experience and borne out by
several comments submitted to the RFI (85 FR 2699). 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 HB 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
HB 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 HB fuel market leaders
tomorrow.
D. Consideration for Geographical 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.
E. Approximate Number of Awards
The number of awards will depend on the number of eligible
participants and the total amount of requested funds. In the unlikely
event that every successful applicant is awarded the maximum amount
available of $5 million, 20 awards will be made. The Agency intends/
expects to make approximately 150 awards and provide assistance to
1,500 locations from this solicitation.
F. Type of Instrument
Grants. 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.
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, and
similar entities with equivalent capital investments, as well as fuel/
biodiesel terminal operations, midstream partners, and heating oil
distribution facilities or equivalent entities.
Applicants must include all proposed activity under a single
application. Application requirements and other important information
is available at Grants.gov and 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, 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.
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 Operators of Underground Storage Tanks (UST), 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
[[Page 26659]]
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, EPA's 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 underground storage tank (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 (UL), 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
(ATG) 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 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, underground storage tank system
components, or other required infrastructure, necessary to make their
facility fully compatible with higher blends of ethanol or biodiesel.
Fuel dispensers/pumps, underground storage tank 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 (UL), 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 be used only 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 biofuel sales and use. HBIIP funds are
intended to provide additional incentives.
D. Eligible Funds
(1) Matching Funds. Those project funds required to receive an
HBIIP grant. The applicant is responsible for securing the remainder of
the total eligible project costs not covered by grant funds. Matching
funds are comprised of eligible in-kind contributions from third
parties and/or cash. In-kind contributions by the applicant cannot be
used to meet the matching fund requirement. Written commitments for
matching funds (e.g., Letters of Commitment and bank statements) must
be submitted with the Certification of Matching Funds when the
application is submitted. 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. Passive third-party equity contributions are acceptable
for HBIIP projects, including equity raised from the sale of Federal
tax credits. In the event of ineligible, overstated, or otherwise
unsubstantiated claims in the Certification of Matching Funds, the
Agency reserves the right to adjust an application's grant request such
that it is commensurate with eligible/actual Matching Funds, or take
otherwise action as deemed appropriate.
Up to 10 percent of an applicant's Matching Funds requirement (up
to five 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 HB
fuel through upgrade or
[[Page 26660]]
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 during the grant period and that are directly related to
the use and purposes of the HBIIP. 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,
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;
(b) Construction, retrofitting, replacement, and improvements;
(c) Fees for construction permits and licenses; and
(d) Professional service fees for qualified consultants,
contractors, installers, and other third-party services.
(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 five
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) Used equipment and vehicles;
(2) Construction or equipment costs that would be incurred
regardless of the installation of HB 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 underground storage tank 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.
(3) 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;
(4) Business operations deriving income from activities of a sexual
nature or illegal activities;
(5) Real property/land;
(6) Lease payments;
(7) Any project that creates a Conflict of Interest or an
appearance of a Conflict of Interest;
(8) Funding of political or lobbying activities;
(9) 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 grant period;
(10) Any expense associated with applying for this program; and
(11) Any expense associated with reporting results and/or outcomes
during the disbursement, performance, and servicing portions of this
program.
(12) Conflict of interest, for purposes of this program 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.
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 either the
Government-wide www.Grants.gov website or by the secure-server portal
https://www.rd.usda.gov/hbiip. No other form of application will be
accepted.
Application and supporting materials are available at Grants.gov
and on the HBIIP web page 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 to these
purposes shall be deemed as 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) Certification of Matching Funds;
(f) Request for Environmental Information; and
(g) SF 424D Assurances--Construction Programs.
(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) Supporting information from a recent/recently updated (within 3
years)
[[Page 26661]]
feasibility study and/or business plan, or equivalent planning
documentation;
(d) SF 424C Budget Information--Construction Programs;
(e) HBIIP Project Technical Report;
(f) Certification of Matching Funds;
(g) Request for Environmental Information; and
(h) SF 424D Assurances--Construction Programs.
(3) System for Award Management (SAM). Applicants must be
registered in the System for Award Management (SAM) prior to applying;
which can be obtained at no cost via a toll-free request line at (866)
705-5711 or online at https://www.sam.gov/SAM/. Registration of a new
entity in SAM requires an original, signed, and notarized letter
stating that the applicant is the authorized Entity Administrator,
before the registration will be activated. All recipients of Federal
financial grant assistance are required to report information about
first-tier sub-awards and executive total compensation in accordance
with 2 CFR part 170.
All applicants except those that are individuals, in accordance
with 2 CFR part 25, must have a DUNS/Unique Entity Identifier (UEI)
number, which can be obtained at no cost via a toll-free request line
at (866) 705-5711 or online at http://fedgov.dnb.com/webform.
(4) Grants.gov. To use Grants.gov and to use the HBIIP online
application system you must already have a DUNS/Unique Entity
Identifier (UEI) number and you must also be registered and maintain
registration in SAM. We strongly recommend that you do not wait until
the application deadline date to begin the application process.
(5) Instructions and resources for completing the online
application are available on the HBIIP web page 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 facility 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. Submission Dates and Times
The deadline date for applications to be received in order 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.
D. 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.
E. Funding Restrictions
The following funding limitations 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. An HBIIP applicant/application may receive one and only
one award in this competition.
(2) There is no minimum HBIIP grant award.
(3) The maximum HBIIP grant award is not to exceed $5,000,000.
(4) HBIIP grants are awarded on a cost share basis for not more
than 50 percent of total eligible project costs.
(5) No HBIIP grant award may exceed an amount calculated as 50
percent of total eligible project costs or the Maximum HBIIP grant
award amount of $5,000,000, whichever is the lesser.
(6) 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.
(7) Underground Storage Tanks and Systems (USTs).
(a) New construction. Fueling Stations/Locations/facilities
constructed during the grant period are restricted from receiving HBIIP
grant funds for underground 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 underground
storage tank 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 underground storage tanks may request
assistance of up to 25 percent of total eligible project costs or up to
$1,250,000, whichever is the lesser. They are eligible for any required
equipment including, but 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.
(8) 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 (five percent of total project
costs) may be used to pay for education/marketing/signage related
expenses.
(9) No HBIIP grant funds may be used to pay for any incurred
expense, equipment purchase, or service paid outside the grant period.
F. Multiple Facilities
While only one HBIIP application may be submitted per applicant
under this Notice, an application may request assistance for multiple
facilities/locations. Section ``E. (6) Funding Restrictions,'' advises
on instances where more than one application is submitted by one or
more affiliates of an entity.
G. Compliance With Other Federal Statues and Other Submission
Requirements
(1) Environmental information. For the RBCS to consider an
application, 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.
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
[[Page 26662]]
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 they have 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 http://www.lep.gov/.
(f) Federal Obligation Certification on Delinquent Debt.
V. Application Review Information
A. Criteria
A priority score will be afforded to complete applications deemed
eligible to compete. Given the purpose of the HBIIP, higher priority
will be afforded to projects deemed to increase significantly 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 (2017-19) or projected
sales for fueling stations constructed during the grant period, for all
fuels including E10 and/or B5;
(b) The incremental increase in HB 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 HB
fuel refueling positions, the greater the HB 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 HB fuel refueling positions
relative to E10 and/or B5, the greater the HB 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
HB 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 HB fuel volume attribution);
(v) Whether the applicant is an owner of 10 fueling stations or
fewer (if yes, a Targeted Assistance Goal, HB 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--Arkansas, Arizona, California, Colorado,
Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska,
Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota,
Texas, Utah, Washington, Wyoming;
(ix) A ``Matching Funds'' investment/commitment to higher blends
signage and/or marketing is proposed (non-zero investment yields
greater HB fuel volume attribution);
(c) 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
[[Page 26663]]
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 (2017-19), for all
fuels;
(b) The incremental increase in throughput of HB fuel, as
substantiated by:
i. Validated demand;
ii. Market drivers;
iii. Documented incentives;
iv. Project sustainability;
v. Investment to consumer education and marketing; and
vi. Partnerships;
(c) The total amount of requested funds.
Fuel distribution facility applications should take special care to
provide evidentiary documentation in support of their throughput
projections in the feasibility study/business plan/equivalent planning
documents and 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) Targeted Assistance Goal of up to 40 percent of funds made
available for activities/investments related to higher blends of fuel
ethanol to applicants (owners) owning 10 transportation fueling
stations/locations or fewer.
(2) A Consideration for Geographical Diversity and markets
underserved by higher blends is also afforded to applicants/
participants based on location of the proposed transportation fueling
stations/locations.
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:
(a) The maximum cost-share amount of 50 percent of total eligible
project costs, or a lesser amount when deemed appropriate, and/or
(b) the Maximum Award amount of $5 million, and/or
(c) available funds; whichever is least, as applicable.
(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, 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 270, ``Request for Advance or Reimbursement.''
C. Reporting
After grant approval and through grant completion, grantees will be
required to provide periodically 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 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 HB fuels.
(2) A final project and financial status report, as required per 2
CFR 200.343 ``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.
[[Page 26664]]
VII. Federal Awarding Agency Contacts
For further information contact: Anthony Crooks: telephone
(202)205-9322, email: [email protected]. Persons with
disabilities that require alternative means for communication should
contact the USDA Target Center at (202)720-2600 (voice).
VIII. Other Information
A. Paperwork Reduction Act
The Information Collection and Recordkeeping requirements contained
in this rule have been approved by an emergency clearance under OMB
Control Number 0570-NEW. In accordance with the Paperwork Reduction Act
of 1995 (44 U.S.C. chapter 35), RBCS invites comments on this
information collection for which the Agency intends to request approval
from the Office of Management and Budget (OMB). RBCS invites comments
on any aspect of this collection of information including suggestions
for reducing the burden. Comments may be submitted regarding this
information collection by the following method:
Federal eRulemaking Portal: Go to https://www.regulations.gov and, in the lower ``Search Regulations and Federal
Actions'' box, select ``RBCS'' from the agency drop-down menu, then
click on ``Submit.'' In the Docket ID column, select Docket No. RBS-20-
Business-0006 to submit or view public comments and to view supporting
and related materials available electronically. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``User Tips'' link.
Comments on this information collection must be received by July 6,
2020. The information collection is one-time activity for the
applications, however, RBCS will need to submit a formal information
collection request for the approval beyond the 6-month emergency
approval to address the ongoing reporting requirement.
The burden for the HBIIP collection of information includes both
the upfront one-time application and the on-going reporting, which will
include mid-year and an annual reporting. The reporting may include
additional reports for projects that run longer.
Comments are invited on (a) the accuracy of the agency's estimate
of burden including the validity of the methodology and assumption
used; (b) ways to enhance the quality, utility, and clarity of the
information to be collected; and (c) ways to minimize the burden of the
collection of information on those who are to respond, including using
appropriate automated, electronic, mechanical, or other technological
collection techniques on other forms and information technology.
Title: Higher Blends Infrastructure Incentive Program (HBIIP).
OMB Control Number: 0570-New.
Type of Request: New Information Collection.
Abstract: The purpose of the HBIIP is to increase significantly 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 out biofuel-related
infrastructure.
Under the HBIIP, funds will be made directly available to assist
transportation fueling and fuel distribution facilities with converting
to higher ethanol and biodiesel blend friendly status by sharing the
costs related to the installation, and/or retrofitting, and/or
otherwise upgrading of fuel storage, dispenser/pumps, related
equipment, and infrastructure.
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.
The information collected from applications as required by this
NOFA include, but are not limited to determine whether participants
meet the eligibility requirements to be a recipient of grant funds,
project eligibility, conduct the technical evaluation, calculate a
priority score, rank and compete the application, as applicable, in
order to be considered. Lack of adequate information to make the
determination could result in the improper administration and
appropriation of Federal grant funds to be a recipient of grant funds
as well as other documents and information that may be relevant as
determined by RBCS.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 78 hours per response.
Estimated Number of Respondents: 100.
Estimated Total Annual Responses: 200.
Estimated Total Recordkeeping Hours: 480.
Estimated Total Burden Hours: 15,600.
Estimated Total Annual Burden (including recordkeeping) on
Respondents: 16,080 hours.
Copies of this information collection can be obtained from MaryPat
Daskal, Regulatory Division Team 2, Rural Development Innovation
Center, U.S. Department of Agriculture, 1400 Independence Ave. SW, Stop
1522, Washington, DC 20250. Phone: 202-720-7853.
All responses to this information collection and recordkeeping
notice will be summarized and included in the request for OMB approval.
All comments will also become a matter of public record.
B. Nondiscrimination Statement
The U.S. Department of Agriculture (USDA) prohibits discrimination
against its customers, employees, and applicants for employment on the
basis of race, color, national origin, age, disability, sex, gender
identity, reprisal and where applicable, political beliefs, marital
status, familial or parental status, religion, sexual orientation, or
all or part of an individual's income is derived from any public
assistance program, or protected genetic information in employment or
in any program or activity conducted or funded by the Department. (Not
all prohibited bases will apply to all programs and/or employment
activities.)
If you wish to file a Civil Rights program complaint of
discrimination, complete the USDA Program Discrimination Complaint Form
(PDF), found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or complete the form at any USDA office, or
call (866) 632-9992 to request the form. You may also write a letter
containing all of the information requested in the form. Send your
completed complaint form or letter to us by mail at U.S. Department of
Agriculture, Director, Office of Adjudication, 1400 Independence Avenue
SW, Washington, DC 20250-9410, by fax (202) 690-7442 or email at
[email protected].
Individuals who are deaf, hard of hearing or have speech
disabilities and wish to file either an EEO or program complaint,
please contact USDA through the Federal Relay Service at (800) 877-8339
or (800) 845-6136 (in Spanish).
Persons with disabilities, who wish to file a program complaint,
please see information above on how to contact us directly by mail or
by email. If you require alternative means of communication for program
information
[[Page 26665]]
(e.g., Braille, large print, audiotape, etc.) please contact USDA's
TARGET Center at (202) 720-2600 (voice and TDD).
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
Mark Brodziski,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2020-09685 Filed 5-4-20; 8:45 am]
BILLING CODE 3410-05-P
