Farmer William “Chip” Callister, left, listened as Agriculture Secretary Tom Vilsack, seated, right, and U.S. Senators Tina Smith, middle, and Amy Klobuchar and U.S. Congresswoman Angie Craig, not pictured, took questions from farmers and others Thursday in Cannon Falls. Vilsack toured the Callister family farm, impacted by drought conditions. ] DAVID JOLES • david.joles@startribune.com Thursday, Aug. 12, in Cannon Falls, MN On Thursday, August 12, Agriculture Secretary Tom Vilsack traveled to Minnesota where he joined U.S. Senator Amy Klobuchar, U.S. Senator Tina Smith, and U.S. Congresswoman Angie Craig for a tour of drought conditions at an impacted farm in Cannon Falls.**Emily Matejka, William “Chip” Callister, cq (David Joles/Star Tribune, Star Tribune/The Minnesota Star Tribune)

The Biden administration's top farm czar announced millions of dollars in federal funding on Monday aimed at helping small and rural gas station service companies upgrade ethanol and biodiesel dispensers across the state, from an Amoco station in Evansville, Minn., to a cooperative near the Iowa border.

U.S. Department of Agriculture Secretary Tom Vilsack was joined by Sens. Amy Klobuchar and Tina Smith on a conference call — after weather woes in Washington, D.C., scuttled plans for a St. Paul event — to unveil 18 Minnesota businesses that will receive part of an additional $50 million to improve fuel dispensers for ethanol and biodiesel.

"By expanding the availability of homegrown biofuels, we are strengthening our energy independence, creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities," Vilsack said.

Funding is just the opening salvo in grant allocations of up to $500 million, which was allocated last fall by Congress and the Biden administration as part of the Inflation Reduction Act, aiming to increase the availability of domestically produced biofuels.

Klobuchar estimated Minnesota received "roughly one-third" of the initial $50 million, showcasing the state's place near the top of the nation's biofuels industry.

"We need to make sure these higher blends can be sold to consumers," Klobuchar said.

Sen. Smith framed the funding as part of the administration's push to decarbonize the nation's transportation sector. "This is nothing but good," she said.

The announcement comes just days after some in the industry expressed concern after the Environmental Protection Agency announced new Renewable Fuel Standards volumes — or the rates at which fuel manufacturers must blend in ethanol or biodiesel — that came in below what some farm commodity groups had called for.

In a statement last week, the Minnesota Soybean Growers Association (MSGA) said they were "baffled" by the volumes announced for 2023, 2024 and 2025.

"The EPA just doesn't seem to prioritize renewable fuels and recognize the ways in which biodiesel improves our environment and economy," said Bob Worth, a Lake Benton farmer and MSGA president.

On Monday, Vilsack pushed back against the criticism.

"The reality is no administration in my 30 years of dealing with this issue has been more supportive of the biofuel industry than the Biden-Harris administration," said Vilsack, the former governor of Iowa. "That's a fact."

Monday's announcement includes $2.28 million to Northern Fuel & Convenience Inc., which owns stations from Bagley to Bemidji to Motley. The upgrades will cover nearly two-dozen E-15 dispensers and 13 biodiesel storage tanks. Nuway Cooperative in Elmore will receive $128,150 to replace one E-15 dispenser, one biodiesel dispenser, and one ethanol storage tank.