WASHINGTON - The U.S. Department of Agriculture (USDA) announced this week grant funding for renewable flexible fuel blender pumps.
Under its Rural Energy for America Program (REAP), the USDA is offering grants and guaranteed loan funding for eligible rural businesses to assist with the cost of purchasing and installing flexible fuel pumps for mid-range ethanol blends (including E85).
Eligibility requirements for a REAP grant include the following:
- The applicant must be a rural small business or agricultural producer.
- For gasoline service stations with convenience stores, applicants must have total income of $27 million or less in the previous tax year (total income is defined as gross receipts less cost of goods sold).
- The project must be for the purchase and installation of a renewable flexible fuel blender pump system (such as mid-range ethanol blends or E85).
- The project must be for commercially available technology.
- The project must be located in a rural area (less than 50,000 residents)
- The applicant must be the owner of the project and control the revenues and expenses of the project, including operation and maintenance.
Grants for eligible projects are limited to 25 percent of total eligible project costs and range from $2,500 to $500,000. The applicant must secure the remainder of the total eligible project costs not covered by grant funds (state, local, and private funds, and investment tax credits, can be used in conjunction with the REAP grant).
Eligible project costs include the following:
- Post-application purchase and installation of equipment (new, refurbished, or remanufactured), including dispensers, pumps, tanks, and piping.
- Post-application construction or improvements.
- Permit and license fees.
- Professional service fees, except for application preparation.
- Retrofitting.
Grant applications must be submitted to USDA Rural Development prior to incurring project costs. To apply for a grant, contact the USDA Rural Development State Office at (573) 876-0995. Information is also available at the USDA??s REAP microsite.