Congressman Dave Loebsack (D-IA) has introduced the Renewable Fuel Utilization, Expansion, and Leadership (Re-FUEL) Act. The goal of the legislation is to create a competitive grant program to assist fuel retailers with investments in renewable and alternative fuel/energy sources. The program would be administered through the U.S. Department of Agriculture (USDA) and will help create new and retrofit existing infrastructure, including pumps for biofuels and hydrogen, tanks, piping and electric vehicle chargers. Loebsack points out that the legislation is already paid for and does not add to the deficit.
“I believe in making things in America and there is no reason our fuel sources shouldn’t be made here as well,” said Rep. Loebsack. “It’s also important that consumers are able to choose where their fuel source comes from when they go to fill up. Too often, infrastructure constraints are cited as the reason for not giving consumers the choices they deserve. This holds back the development of our renewable and alternative energy sources that create jobs in Iowa and across the country.”
To be eligible for the grant, projects must be capable of dispensing fuel or energy currently not widely available. Projects can be new infrastructure projects or retrofits to existing infrastructure and can include infrastructure such as biofuel and hydrogen pumps, tanks, piping, and electric vehicle chargers. A minimum of 30 percent non-federal match is required and the maximum grant per year per entity is $100,000. In addition, the grant program covers infrastructure for renewable or alternative energy, which includes renewable energy, energy for charging electric vehicles, and hydrogen and fuel cells.
“I commend Congressman Loebsack for introducing legislation that supports America’s consumers, rural communities and growing biofuels industry,” said Tom Buis CEO of Growth Energy. “By supporting renewable fuel infrastructure, this legislation will help push our nation toward energy independence and give consumers some much needed choice and savings at the pump. This legislation also emphasizes the importance of investing in and revitalizing rural America.”
The Re-FUEL Act does not add to the federal deficit. The program would be paid for by setting aside 1 percent of offshore oil royalties each fiscal year. This amounted to about $54.34 million in fiscal year 2013 and $52.16 million in fiscal year 2012. In addition, no other required disbursements from natural resources accounts such as those for state sharing, reclamation fund, or Land and Water Conservation Fund will be affected.
“The pace at which the renewable fuel advantages will be available to American drivers is greatly sped up by the fact that the proposed grants can be used for infrastructure like new blender pumps as well as retrofitting existing pumps, pipes, tanks and chargers,” said Bob Dinneen, president and CEO of the Renewable Fuels Association. “Placing a priority on rural America is a welcomed approach. The small communities of rural America are amongst the most challenging locations for economic development. Rep. Loebsack recognizes that ethanol production has created and supports over 386,000 jobs with very real potential to expand on that success.”