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Iowa to increase ethanol and biodiesel infrastructure

16th May, 2008

A new state law will help expand ethanol and biodiesel availability in Iowa state.

Changes have been made to the Iowa Renewable Fuels Infrastructure Programme created in 2006 to expand renewable fuel infrastructure and access to renewable fuels all across Iowa.

Among the changes are enhanced grants for E85 and biodiesel infrastructure, bonus grants for adding pumps at multiple retail outlets, allowing retailers to receive grants for both E85 and biodiesel pumps, and allowing blender pumps to qualify for the grant programme.

Iowa Renewable Fuels Association executive director Monte Shaw says the bill will boost Iowa's efforts to bring more E85 and biodiesel to Iowa consumers. 'Roughly 80% of Iowa flexible fuel vehicle owners do not have access to E85 within their ZIP code,' says Shaw. 'This proactive legislation should cause petroleum wholesalers and retailers to rethink the profit potential for adding renewable fuels to their product mix.'

The bill also calls for the creation of a state-wide renewable fuels marketing plan and marketing campaign for owners of flex fuel vehicles.