SEC. 5 higher blends infrastructure incentive program grant - IRA

The Department of Agriculture Rural Housing Service awarded $176,000 to Chestnut Petroleum Dist., Inc. on January 26, 2026, under the Higher Blends Infrastructure Incentive Program (CFDA 10.754).

The funding supports conversion of the recipient's fuel distribution facility in New York to ensure full compatibility with higher-blend ethanol (greater than 10 percent) and biodiesel (greater than 5 percent). Eligible costs include upgrade or installation of fuel dispensers and attached equipment, underground storage tank system components including tanks, pumps, ancillary equipment, lines, gaskets, and sealants, and other infrastructure necessary for environmentally safe availability of higher-blend fuels.

Performance extends through January 26, 2028. The recipient must complete construction within 18 months of grant agreement execution and maintain point-of-sale records for five years following completion. Owners and operators must notify the implementing agency 30 days before storing fuels containing more than 10 percent ethanol or more than 20 percent biodiesel and keep records demonstrating UST system compatibility with stored substances.