FOR MORE INFORMATION:
Monte Shaw, 515-252-6249

FOR IMMEDIATE RELEASE

May 12, 2008

Enhanced Renewable Fuels Grant Program

Will Speed Iowa Energy Independence

 Gov. Culver Signs HF 2689 at State Capitol

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today applauded Iowa Governor Chet Culver and the Iowa Legislature for putting into law an enhanced renewable fuels infrastructure program.  As a result, it is expected that many more Iowans will have access to biodiesel and E85 over the next few years.  The legislation also updates and clarifies regulations to streamline the blending of ethanol into all grades of gasoline at various blend levels.

“Iowa needs to lead the world not only in the production of renewable fuels, but also in the use of renewable fuels,” said Monte Shaw, IRFA Executive Director. “This bill will boost Iowa’s efforts to build the necessary infrastructure to bring more E85 and biodiesel to Iowa consumers.  We applaud Gov. Culver and the State Legislature for their continued efforts to promote the use of renewable fuels. ”

Governor Culver signed HF 2689, the renewable fuels infrastructure bill, into law today at the State Capitol.  Highlights of the bill include:

• Enhanced grants for retailers installing E85 or biodiesel infrastructure;
• Bonus grants for retailers adding renewable fuels to more than one retail outlet within 12-months;
• Allows same retail outlet to receive both an E85 and a biodiesel grant instead of being forced to choose between the two;
• Clarifies that blenders pumps are eligible for grants;
• Creates a new $100,000 grant for parties installing B99/100 tanks to store, blend and dispense biodiesel blends; and,
• Updates several regulations to ease the use of ethanol in all grades of gasoline and at various blend levels.

 “Roughly 80 percent of Iowa flexible fuel vehicle (FFV) owners do not have access to E85 within their ZIP code,” added Shaw.  “Further, there are state agencies wishing to use B20 year-round who cannot find a supplier.  Clearly, a lack of infrastructure is a problem.  This proactive legislation should cause petroleum wholesalers and retailers to rethink the profit potential for adding renewable fuels to their product mix.”

Iowa is the leader in renewable fuels production.  Iowa has 14 biodiesel refineries with a combined annual capacity of nearly 320 million gallons in operation.  Two biodiesel refineries under construction will add 35 million gallons of capacity.  In addition, Iowa has 29 ethanol refineries with the capacity to produce over 2.2 billion gallons annually.  There are 14 ethanol refineries under construction or expansion that will add nearly 1.5 billion gallons of annual capacity.  Many additional renewable fuels projects are under development.

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

###