Iowa Renewable Fuel bill contains blender pump grants, statewide marketing funds

May 21, 2008

In Iowa, Wallaces Farmer analyzed the new Iowa Renewable Fuels Infrastructure Bill, signed into law last week by Gov. Culver and found that the bill provides: expanded funding for pumps that blend ethanol at concentrations other than E10 or E85; funding for both E85 and biodiesel at the same retail location rather than “either/or” support; statewide renewable fuels marketing plan and encourages use of biodiesel by state and local fleets.

State Senate leader Jack Kibbie told iowapolitics.com “When I drive from Emmetsburg to the State Capitol, I pass by only one E85 pump. If given the option, Iowans would rather use the fuels we produce here in our state rather than import it from the Middle East.â€

Kibbie recently proposed giving gas stations the right to remove labeling from E10 ethanol blended fuel, as a measure to stimulate ethanol usage. A similar move in Kansas has resulted in higher ethanol sales. Kibbie told the Des Moines Register that E10 ethanol is stalled at a 73 percent usage rate in Iowa, in part because of resistance to ethanol from out-of-state residents. The move was rejected after consumers relayed concerns about knowing what was in the fuel they were buying.

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Written by Jim Lane · Filed Under Policy