Grain News

Ethanol and Biodiesel Producers Call for Iowa Renewable Fuels Standard

Date Posted: December 21, 2005

Johnston, IA-–The Iowa Renewable Fuels Association (IRFA) announced Dec. 21 its support for an Iowa Renewable Fuels Standard (RFS) that would replace 25% of Iowa’s gasoline with renewable fuels like ethanol and biodiesel by 2015.

The aggressive RFS allows gasoline retailers flexibility in meeting the standard through the sale of E10, E85, and biodiesel blends.

By the end of 2006, Iowa will have a minimum of 27 ethanol plants capable of producing over 1.6 billion gallons per year.

In addition, at least 6 biodiesel plants will be capable of producing more than 120 million gallons per year.

“Iowa is the leader in producing renewable fuels, but we’ve lagged behind in use,” stated Bernie Punt, IRFA President and general manager of Siouxland Energy and Livestock Cooperative.

“Now is the time for Iowa to become the leading consumer of renewable fuels.

"This proposal could quadruple the use of renewable fuels over the next decade.

"The Iowa RFS can serve as model legislation for other states to follow.”

While the RFS would not mandate any per gallon renewable fuel use, Iowa gasoline retailers would be required to achieve a minimum percentage of renewable fuels use compared to total retail gasoline sales over the course of a year.

Ethanol, such as E10 and E85 blends, and biodiesel, such as B2 and B20 blends, would count toward meeting the standard.

The RFS schedule would be: 10% by 2008, 15% by 2010, 20% by 2012, and 25% by 2015.

“Iowans grow corn and soybeans and process those grains into ethanol and biodiesel,” added Sam Cogdill, president of Amaizing Energy and IRFA’s president-elect.

“The RFS will allow local residents to complete the hometown energy cycle by purchasing renewable fuels.

"And a good chunk of the money spent on fuel would stay in Iowa – creating jobs and boosting our economy.”

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s biodiesel and ethanol producers.

The trade group fosters the development and growth of the renewable fuels industry in Iowa through legislative and regulatory efforts, education and promotion, and infrastructure development.

For more information, contact Monte Shaw at 515-225-9242.

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