Iowa House of

Representatives

 

 

Monday, January 30, 2006                                                     For More Information:

                                                                                                Rep. Reichert, 515-281-3221

 

REICHERT UNVEILS ALTERNATIVE ENERGY &
RENEWABLE FUELS PLAN

 

Des Moines, Iowa – State Representative Nathan Reichert of Muscatine today joined other Democrats to announce a renewable energy plan to expand the use of ethanol and biodiesel, grow Iowa’s economy, invest in research and development, and create a renewable fuel standard.

 

“I believe Iowa should be a world leader in renewable energy to strengthen our economy, provide good jobs, help consumers, reduce the demand for foreign oil, and meet our obligations to future generations,” said Reichert.

 

“Big oil companies are making it nearly impossible for many Iowa gas stations to offer gas with 85 percent ethanol,” said Reichert.  “There are thousands of Iowans who drive cars that can use Ethanol 85 but don’t have anywhere to buy it.  My plan will prevent big oil companies from prohibiting Iowa gas stations from selling Ethanol-85.”

 

The plan to expand the use of ethanol and biodiesel also includes incentives to help gas stations put in Ethanol-85 pumps, incentives for gas stations to sell both Ethanol-85 and biodiesel and notices about Ethanol-85 to all Iowans who drive flexible fuel vehicles.

 

“A critical part of our plan is to invest in research and development initiatives for alternative energy and renewable fuels,” said Reichert.  “We need to include renewable energy in our state economic development strategy and expand the Iowa Values Fund to make sure resources are available for renewable energy projects.  Bio-refineries, which use biomass feedstocks to produce high-value chemical products and energy, also hold great potential for our state with the promise of high-wage jobs, added value to agricultural products and a cleaner environment.”

 

Other initiatives include competitive research grants for new renewable energy technology, creation of the Iowa Center for Advanced Renewable Energy Technology and a renewable fuel standard with the goal of 25% renewable fuels sold in Iowa by 2015.

 

# # #

 Alternative Energy & Renewable Fuels Plan

Fact Sheet

 

 

  • Expand & Promote Use of Ethanol-85 and Biodiesel
    • Prohibit big oil companies from refusing to allow Iowa stations from selling Ethanol-85 in their franchise agreements
    • Investment tax credit for gas stations – starting at 20% for the purchase, installation, and conversion of pumps to Ethanol-85
    • 10˘ per gallon tax credit to retailers who sell Ethanol-85
    • 1˘ per gallon tax credit to retailers who sell biodiesel, based on the percentage of biodiesel blend -- 2˘ per gallon credit for selling 2% blend or 5˘ for 5% blend
    • Adopt performance standards for all Ethanol-85 pumps and biodiesel sold in Iowa
    • Provide notice to all consumers who own flexible fuel vehicles at the time of their annual registration and create a website with a list of flexible fuel vehicles and gas stations that provide Ethanol-85 and biodiesel

 

 

 

  • Encourage Economic Growth through Renewable Fuels, including New Biorefinery Technologies
    • $45 million over nine years to the Iowa Values Fund for clean energy companies to foster research, development, commercialization, and job creation
    • Encourage development of a biorefinery with at least $5 million for matching funds with the federal department of energy
    • Add Alternative Fuel & Renewable Energy to Iowa’s targeted industry clusters, which currently includes Life Sciences, Advanced Manufacturing & Information Solutions

 

 

 

 

  • Invest in Research & Development to make Iowa a World Renewable Fuel Leader
    • Create the Iowa Center for Advanced Renewable Energy Technology at Iowa State University to improve the economic and environmental performance and feasibility of Iowa biomass energy products
    • $45 million over nine years for competitive research grants at colleges, universities, or businesses
    • Fund recommendations of Bioscience Alliance of Iowa with $16 million in 2007 to develop emerging bioscience technologies

 

 

 

  • Renewable Fuel Standard With A Goal Of 25% Renewable Fuel By 2015
    • Create a graduated renewable fuel standard -- 10% of all fuel sold in Iowa will be renewable by the end of 2009, 15% by 2011, 20% by 2013, and 25% by 2015