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FOR IMMEDIATE RELEASE
February 15, 2010

Iowa Governor Chet Culver Responds to Questions
at the 4th Annual Renewable Fuels Summit

JOHNSTON, IA – At the 4th Annual Renewable Fuels Summit, held on January 25, 2010 and hosted by the Iowa Renewable Fuels Association, Iowa Governor Chet Culver responded to the following questions regarding the future of renewable fuels in Iowa:

Bill Couser, IRFA President:

Iowa is currently the leading state in ethanol production by a wide margin.  With roughly 75%

sales of E10, Iowa was once a leader in ethanol use as well.  Yet since 2005 as Iowa E10 sales

remained flat, the nation as a whole has moved from about 30% E10 sales to around 80%.  That’s

right – Iowa now lags the nation in the sale of E10 blends.  The likely partial approval of E15 by

the EPA later this year accelerates the need to move Iowa infrastructure from non-ethanol fuels to

E10, E15 and even E85 if Iowa is to regain its leadership position on ethanol policy and use.

IRFA believes the simple and straight-forward way to accomplish this would be to enact an E10 Fuel Quality Standard similar to Minnesota’s while keeping incentives for E15 and E85 intact.  Others argue Iowa’s current ethanol program, enacted in 2006 is enough.  Still others argue that an E10 Fuel Quality Standard is unnecessary but that incentives should be ended for E10 in order to enhance incentives for E15 and E85.

Which of these three visions, if any, do you support for regaining Iowa’s rightful place as not just a leading ethanol producer, but as a leading user and ethanol advocate for other states to follow as well?

The Honorable Chet Culver, Governor of Iowa:

“I think in terms of the E10 fuel quality standard and doing more to enhance that I think that makes a lot of sense. I think we need to really solidify our position in terms of the competition and making a statement related to E10 or any blend above that is a step in the right direction. As you know, I have been very active, as the chairman of the Governors’ Biofuels Coalition, in urging the EPA to grant that E15 waiver. I think that’s our biggest battle. I think that’s where we could see the most significant change, is with the help of the feds allowing for that higher blend. I think that would have the most benefit to our producers, and I will continue to work extremely hard with federal officials on securing that.

“Finally, blender pumps have got to be a part of the equation. I’m very excited about the progress we’ve made in this state related to the biofuels infrastructure and building out that infrastructure with a focus on more blender pumps. And I would love to see the day where a consumer will have a choice at the pump and they can create their own blend based on what they want. And again, that will obviously ramp up the production and the demand. I think a combination of things that we could do there on the ethanol side and, again this session working with republican and democratic legislatures, we need to move forward on support the ethanol industry.”

Bill Couser, IRFA President:

The biodiesel industry today is facing difficult times due, in part, to federal policy inaction.  But

even when the feds gets their house in order, Iowa is still on the brink of losing its leadership

position in biodiesel to other states.  Green collar jobs and local investments are at stake, but it’s

more.  Without strong biodiesel producers, Iowa will not be “ground zero” for the investment and

innovations of the rapidly evolving biodiesel industry – opportunities only hinted at by recent

projects including:

• Algae production in Shenandoah
• Exotic feedstock testing at a world class lab in Ames
• And a first-of-its-kind biorefinery project in Newton.

To keep Iowa in our position of leadership for the future, IRFA and many other groups are calling for enactment of Senate File 464, the B5 Fuel Quality Standard.

Will you urge the Iowa Legislature to pass the B5 Fuel Quality Standard today and commit that you will sign the bill if it comes to your desk?

The Honorable Chet Culver, Governor of Iowa:

“This is an issue that we have talked about quite a bit so far this session. As you know there has been some recent action in the Senate. I think it’s too early to tell frankly what kind of momentum that may or may not get. My goal is to do everything we can this session where we can find consensus to help your industry. For example, the tax credits for biofuels and for retailers. We’ve had a lot of discussions about tax credits. There’s been a review done of all of our tax credits. I’ve had good conversation with retailers about how critically important those credits are to this industry. So I hope for example that we can keep some or all of those in place. Whether or not there will be the political will to do that and/or anything more on the B5 mandate is unclear. But the lieutenant governor and I, I think the bottom line is that we are going to try to find as much consensus as we can on a package of things both at the state level and at the federal level that would support the industry.”

Bill Couser, IRFA President:

“In 2006 the Iowa Legislature enacted a renewable fuel infrastructure grant program to help qualifying retailers put in biodiesel, E85 and blender pumps.  Before the program, Iowa had less than 15 E85 pumps – today the number is 125 and growing.  But even with that progress, today more than 70% of Iowa FFV owners do not have an E85 pump in their ZIP code.

“With about $3.5 million remaining in the fund, some have suggested “scooping” the money to fund general expenditures in the state budget.  IRFA believes this would be a short-sighted move that harms Iowa’s twin goals of economic development and energy independence.

“Will you commit today to protecting the Renewable Fuels Infrastructure Grant fund so that more Iowans will have an Iowa renewable fuel choice in the future?”

The Honorable Chet Culver, Governor of Iowa:

“Yes.  That one's easy, and I'm very excited about what that infrastructure fund has meant.  Actually, one of the reasons I ran for governor was because I was frustrated about how slowly things were moving forward in terms of the infrastructure.  And I was troubled, as I know this group was, about the fact that here we’re leading the nation in biofuels production, but yet you can’t find a flex fuel pump.  At that time, five years ago, it was hard to find one in the state.  So this fund, this renewable fuels infrastructure grant program, has allowed us in metro Des Moines, for example, to go from one to a dozen flex fuel pumps in the last 18 to 24 months or so.

“But we have a ways to go, which I think makes the case that we need to keep this investment moving forward.  I also want to thank the retailers and those businesses across the state that have embraced this opportunity for our country and for our state.  Kum & Go, for example, has really stepped up and taken some chances and made some significant investments.  So this is not only about our state investment – this is about helping those private sector partners, in terms of allowing them to reach their goals and make these investments pay off.  So, I don't think we can afford to leave the producers or the retailers hanging at this critical juncture.”

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For more information, visit the Iowa Renewable Fuels Association website at:  www.IowaRFA.org.