FOR MORE INFORMATION:
Lucy Norton, Managing Director, 515-225-9242
Monte Shaw, Executive Director, 515-225-9242

FOR IMMEDIATE RELEASE

Bill Introduced in Senate Natural Resources Committee to Replace 25%
of Iowa’s Gasoline with Ethanol and Biodiesel by 2015
Proposal Would Increase Consumer Access to Renewable Fuel

 JOHNSTON, Iowa - Jan 31, 2006 – The Iowa Renewable Fuels Association (IRFA) today announced that a bill has been introduced in the state Senate Natural Resources Committee that would establish a 25% Iowa Renewable Fuels Standard (RFS). The bill, Senate Study Bill 3054, was requested by the committee co-chairs, Sen. Hubert Houser (R-Carson) and Sen. Dennis Black (D-Grinnell).

The Iowa Renewable Fuels Association worked with the Iowa Corn Growers Association (ICGA) to develop the proposal that replaces 25% of Iowa’s gasoline with renewable fuels like ethanol and biodiesel by 2015. The aggressive RFS allows gasoline retailers flexibility in meeting the standard through the sale of E10, E85, and biodiesel blends.

“Lot’s of people are interested in promoting renewable fuels this year. What makes this bill unique is that it marries aggressive incentives with common-sense accountability. This bill will get the job done,” stated IRFA’s Executive Director Monte Shaw. “Promoting renewable fuels is too important to be timid or to just hope for the best. Iowa needs an RFS that reflects its leadership in ethanol and biodiesel production.”

While the RFS would not mandate any per gallon renewable fuel use, Iowa gasoline retailers would be required to achieve a minimum percentage of renewable fuels use compared to total retail gasoline sales over the course of a year. Ethanol, such as E10 and E85 blends, and biodiesel, such as B2 and B20 blends, would count toward meeting the standard. The RFS schedule would be: 10% by 2008, 15% by 2010, 20% by 2012, and 25% by 2015. To help retailers achieve the standard, the bill includes a 10-cent per gallon incentive for E85 and a 3 to 5-cent per gallon incentive for biodiesel blends of 2% or higher.

By the end of 2006, Iowa will have a minimum of 27 ethanol plants capable of producing over 1.6 billion gallons per year. In addition, at least 6 biodiesel plants will be capable of producing more than 120 million gallons per year.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s biodiesel and ethanol producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through legislative and regulatory efforts, education and promotion, and infrastructure development.