If you have questions that are not addressed here or in the request for proposals (RFP), email them to MDA.AGRIGrants@state.mn.us with “AGRI Biofuels Infrastructure Grant” in the subject line. We will post all questions and answers on this page.
Project eligibility
Q: My station currently has two underground storage tanks. I plan to add an additional tank for this project but am not replacing either of my current tanks. Is the addition of the tank an eligible expense?
A: Yes, the addition of a tank that meets the eligibility requirements referenced in the RFP is an eligible project.
Q: If I request funding for new equipment certified as compatible with E25 or higher blends, is it allowable to use the new equipment for other products as well?
A: Yes, if the applicant and equipment meet the eligibility requirements, then the new equipment may be used for any blend for which it is certified. Proposed projects will be evaluated by multiple criteria, as listed in the "Project Evaluation Profile" section of the RFP. Reviewers will consider the extent to which a proposed project will increase access to and sales of motor fuel blends containing at least 15% ethanol.
Q: Can grant funds be used to modify an existing pump dispensing E85 or other flex fuel blends (e.g., E30 or E50) so that it can also dispense E15?
A: Yes, any modifications necessary to allow the sale of E15 from existing flex fuel pumps (e.g., E30, E50, E85, etc.) using components that are certified for E25 or greater are eligible.
Q: Can grant funds be used for biodiesel equipment?
A: No, biodiesel equipment is not eligible for this funding opportunity.
Q: Are the following expenses eligible for reimbursement?
- Costs of deconstruction or removal of existing pumps and islands
- Installation of new equipment
- Costs associated with new islands (such as piping or connections to tanks, electrical, concrete, and related software required for operation)
A: Yes, costs for the items referenced above are eligible expenses, provided they are components necessary for installing and operating equipment certified for E25 and not related to environmental remediation. You may explain why such components are necessary in the budget narrative section of the application.
Q: Are the costs associated with the re-installation of pavement or concrete over newly installed storage tanks and piping considered eligible expenses?
A: Yes, costs for the items referenced above are eligible expenses, provided they are components necessary for operating equipment certified for E25. You may explain why such components are necessary in the budget narrative section of the application. Expenses not directly related to the new equipment are ineligible (e.g., paving beyond immediate vicinity of new equipment, signage on awnings, etc.)
Q: Are the costs associated with physical coverings and awnings over the new islands considered eligible expenses?
A: No, expenses for equipment not directly related to the storage or dispensing of E25 or higher blends (e.g., signage, canopies, awnings) are not eligible.
Q: I had to have a technician come out to troubleshoot an error we were getting on the dispensers shortly after they were installed. Is this an eligible expense?
A: Generally, service calls related to the initial startup of new equipment will be allowable. However, general maintenance service calls will not be. Always contact the grant administrator for prior approval before seeking reimbursement for these calls.
Q: Can we include the price for a new LED sign in the proposal?
A: No, the LED sign is not an eligible expense.
Q: I signed a contract with a petroleum contractor for our project, but the work has not begun. If the contract is cancelled or voided before the project begins, can I apply for the grant?
A: We understand that it can make sense to sign a contract with a vendor early in your planning process to help get the best price, get on a contractor's schedule, etc. In your application, you may include items and services that you've contracted for but have not paid for or received. However, this can be risky since we aren’t able to fund all projects and cannot guarantee that your project will be selected for funding, and we have the right to reduce budgets and adjust award amounts in the review process.
Q: We are planning to upgrade all our fuel storage and dispensing equipment and have already replaced the dispensers. However, we still want to replace our underground tanks; they have not been purchased nor installed yet. Is our project eligible for grant funding?
A: Proposals can be for a part of a larger project as long as no expenses have been incurred and no work has begun for the requested equipment/portion of the project prior to signing a grant agreement with the State (if awarded funding). In your proposal, provide details about the overall project, including the parts that have been completed. Based on what you’ve shared, the dispensers are not eligible for funding, but the tanks would be.
Q: We have a current fuel station (Location A) that does not have equipment certified to dispense E15 or higher fuel blends. We would like to offer this option to our community; however, we would like to move our fuel station to the lot across the road instead (Location B). Would this project (removing tanks from the current location, installing new equipment at the new location) be eligible for funding?
A: This project can be eligible for funding if the following are true:
- Location A does not currently have equipment certified for dispensing E15 or higher blends;
- Location A will be completely decommissioned from selling any fuel options that Location B will be offering after project completion; and
- Location B is serving the same customer base as Location A (you will need to justify this in the application).
Additionally, grant funding cannot be used for the removal of any non-functioning equipment, relocation of equipment between different locations, or relocation of equipment that is not directly related to increasing access to E15 or higher biofuel blends.
Applicant eligibility
Q: Can a business apply for up to 10 sites, with each request up to $199,000?
A: A business that owns 10 or fewer retail petroleum dispensing sites can apply for up to $199,000 in funding for each site in Minnesota within the parameters of the RFP. A separate application needs to be submitted for each site.
Q: Can grant funds be used to build new stations?
A: No. To be eligible for funding, a retail service station must be in operation and dispensing fuel at the time of application and meet all other eligibility criteria referenced in the RFP. Stations under construction or planned for construction, and not yet dispensing fuel, are not eligible for this funding opportunity.
Application
Q: Are competitive bids required, and if so, do applicants need to submit bids with their application?
A: All funded applicants need to follow the state’s bidding requirements. We expect that most grantees will need to follow the "non-governmental/nonprofit organization" guidelines. Note that if specific contractors are named in the application, you won't need to undergo a formal bidding process, which can save you time and effort later. However, you're not required to submit bids with your application materials.
Q: We have a general contractor that will hire subcontractors. Is naming the general contractor sufficient to not have to undergo the formal building process?
A: Yes, naming the general contractor is sufficient if you are paying them and not the subcontractors for their services.
Q: What should be included in the business plan?
A: For guidance on components typically included in a business plan and other resources regarding business plans, please refer to the Minnesota Department of Employment and Economic Development's Business Plan Overview. If your business includes multiple divisions and service lines unrelated to the retail sale of fuel, you may include just those portions of your business plan relevant to the grant request.
Q: Do I need to provide a formal marketing plan?
A: No, a formal marketing plan isn't required. The application requests “a description of your current marketing efforts and explain the how you will market biofuels after completion of the project.” You can use the space provided to describe your current and future marketing plans.
Q: If my business owns multiple retail petroleum dispensing sites (10 or fewer), how do I submit separate applications for those sites that are eligible for funding?
A: After creating your account in the online application system (see the Online Grant Application Guide (PDF) for instructions), complete an application for each site. From the Applicant Dashboard, select the “Apply” button in the upper left to get to the listing of grant opportunities. Find the correct grant opportunity, "AGRI Biofuels Infrastructure Grant FY25," and select the "Apply" button on the right to start a new application. Some of the information will be the same across multiple applications, other information will be site-specific. Be sure to use a different project name for each application.
Q: Since we are trying to obtain support from two funding sources, the scope of our project is bigger than just the amount allowed by the MDA. Should we include the entire scope of the proposed project in the MDA proposal or only plans and costs associated with the MDA proposal?
A: We recommend sharing the entire scope of the proposed project in the application, but be sure that the review committee can clearly understand what would be funded from the MDA grant. Please separate the MDA component (including the 35% match) in your budget table.
Q: If the timeline table does not allow for enough space to enter all of our information, how can we include more details?
A: If there aren’t enough rows for you to provide a complete timeline, you should use the upload box that we added to the application to send us an Excel or Word file with your timeline.
Q: I received a grant from the USDA's Higher Blends Infrastructure Incentive Program (HBIIP). How much can I request from AGRI's Biofuel Infrastructure Grant program (BIP)?
A: Grantees may request up to 65% of the eligible total project cost through BIP. BIP and HBIIP grants can be used as match for each other, but you cannot receive grants for more than your actual costs. For example, if an item that is eligible under both programs costs $100,000, you cannot receive more than $100,000 through both programs combined.
You’re required to disclose other funding sources in the application. Note that we can reduce budgets and adjust award amounts during the review process.
We recommend that you request funding to provide HBIIP’s required match (if those expenses are also BIP eligible) and for other expenses that were not covered by HBIIP grant funding but are eligible under the BIP grant. You may also request up to a 5% contingency of your total BIP-eligible project cost, so long as your total funding request is less than $199,000. Here is an example of how you might calculate your request:
- Total Project Cost (BIP Eligible): $250,000
- HBIIP Grant Amount: $100,000 (with $100,000 required match)
- Costs not covered by HBIIP: $150,000
- Contingency (up to 5%): $12,500
- BIP Request: $162,500
Match
Q: Can funds from the USDA Higher Blends Infrastructure Incentive Program (HBIIP) be used as match for the MDA grant? If yes, can it be used to cover the full 35% required? Would those ineligible costs, such as biodiesel equipment, be allowed as part of the match?
A: USDA funds can be used for some or all of match if the costs are also eligible under the MDA’s program. For example, biodiesel equipment is not eligible under the MDA grant, so it cannot be counted towards the 35% match requirement.
Q: Can we use a proposed USDA grant as match for the MDA grant, and if so, what documentation is needed? If we are unsuccessful in obtaining the USDA funding, the project as planned would no longer be financially feasible. Would we be able to withdraw from the MDA grant?
A: Yes, the USDA funds could still be used as match. You should clearly indicate in your application that you anticipate applying for these funds, pending an approval of the MDA grant. If you are not successful in receiving a USDA grant, you could withdraw from the MDA grant.
Award process
Q: If a project is selected for a grant award, at what point does the grantee receive grant funds?
A: Grant funds are dispersed on a reimbursement basis (i.e., there are no cash advances). All requests for reimbursement must correspond to the approved grant budget. You must show proof that grant project work has been done by submitting details of each purchase on receipts or invoices, along with proof that the vendors have been paid. You may request reimbursements quarterly during the project. We will hold back the final 10% of each grant award until the upgraded equipment is in operation and other requirements in the RFP and grant contract agreement are fulfilled.
Q: If my grant proposal is approved and later I determine that I cannot complete the project, can I turn down the funds?
A: Yes, applicants may turn down a grant award if they are selected for funding. If a selected applicant chooses to not accept an award, we’d like for them to do so in a timely manner so those funds can be made available to another applicant.
Q: The entire project is larger than the specific portion that may be covered by the MDA grant and the project period for the USDA grant may run longer than that of the MDA grant. Would it be permissible if all allowable expenses are billed on schedule within three years for the MDA grant but the final completion of the work occurs after the MDA grant ends?
A: All work that is covered under the MDA grant must be purchased and paid for by the end of the grant award period. The equipment must dispense E15 before we will make the final payment. The final payment can be made up to one year after the expiration of the grant agreement.
