Iowa Law To Build Biofuel Infrastructure

Iowa Governor Chet Culver signed into law a bill aimed at improving infrastructure for the state’s biofuels industry. House File 2689 builds on the state’s 25% renewable energy standard by streamlining state regulations, providing grants for infrastructure development and encouraging more blending of ethanol and biodiesel at the state’s fuel pumps. 

The legislation increases grant amounts and cost-share percentages for biofuel terminal infrastructure and retailer enhancements, including a $100,000 grant for parties installing tanks to store, blend and dispense biodiesel fuels. Retailers are also now eligible to apply for multiple awards for biodiesel and E85 ethanol improvements at the same site.  

Additionally, the bill calls for the state to launch a marketing campaign aimed at educating consumers about the multiple benefits of biodiesel use. 

Before signing the bill, Governor Culver addressed the food versus fuel debate, saying that Iowa can both fuel and feed the world. 

Iowa has 29 ethanol refineries with the capacity to produce over 2.2 billion gallons annually. There also are 14 ethanol refineries under construction or expansion that will add nearly 1.5 billion gallons of annual capacity. 

In addition, Iowa has 14 biodiesel refineries with a combined annual capacity of nearly 320 million gallons in operation, and two biodiesel refineries under construction will add 35 million gallons of capacity. 

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