Iowa will see another year of funding for retailers to add blender pumps. The Iowa Legislature voted unanimously to allocate funding for the biodiesel and ethanol blender pump program known as the Renewable Fuels Infrastructure Program (RFIP). The Iowa Renewable Fuels Association (IRFA) recently reported that interest in blender pumps is at an all time high and the last round of funding, totaling $3.2 million funded 68 projects. This marks the last year of funding for the program that kicks off the FY2017 fiscal year.
“While we were hopeful for a long-term funding solution for the state’s renewable fuels infrastructure program, we’re very pleased today that the Iowa legislature was able to keep this vital initiative going for another year,” said IRFA Policy Director Grant Menke. “The USDA’s Biofuels Infrastructure Partnership re-energized many Iowa retailers, leading to record participation in the blender pump program over the past year. This one-year funding extension allows us to build upon this momentum and ensure Iowans have greater access to cleaner-burning, lower-cost renewable fuels.”
The Iowa Renewable Fuels Infrastructure Program (RFIP) offers cost-share grants to Iowa retailers wishing to upgrade fueling infrastructure to offer E15, E85 and/or biodiesel blends. Reimbursement can be up to 70 percent of the installation costs, up to a maximum of $50,000 per project, with a five-year commitment to sell E15, E85 or biodiesel blends.
“This legislation does permanently end the current source of RFIP funding, so finding a long-term funding solution will be a high priority for the biofuels and renewable retailers community next legislative session. Bottom line, this program provides immense benefits to Iowans in the form of cleaner air, competition at the pump, lower fuel prices, and a stronger Iowa economy,” added Menke.