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Gas stations awarded funds for offering higher blends of ethanol fuel

This news story was published on April 14, 2014.
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fuel-capDES MOINES – Iowa Gov. Terry Branstad, Lt. Gov. Kim Reynolds and Secretary of Agriculture Bill Northey announced the Oak Street Station in Inwood, Iowa, and Farmers Cooperative in Mount Ayr, Iowa, have been selected as recipients of funds through the “Fueling Our Future” pilot program. Each project will receive $125,000 in cost share funding to support the increased usage of higher blends of both ethanol and biodiesel.

“When we announced the ‘Fueling Our Future’ initiative in October 2013, we set a goal of expanding access to higher blends of ethanol,” Branstad said. “I’m pleased today to be able to announce the two sites that have been selected, which will help grow the local economy and expand access to ethanol and biodiesel.”

Farmers Cooperative plans to build a new fueling site at its Country Store in Mount Ayr to offer E10, registered E15, E30, and E85 and biodiesel blends of B5, B10, B20 and B99. The project was also selected to receive $100,000 through the Iowa Renewable Fuels Infrastructure program. The total cost of the project is $577,559.

The Oak Street Station will build a new site in the northwest town of Inwood that will offer renewable fuels in five dispensers. E10, E15, E30 and E85 will be available for ethanol customers. Diesel customers will have access to B5 year-round and B99.9 will be offered to independent jobbers and for special use customers, such as tractor pullers and other blenders, during the summer months. The project is also eligible for funds through the Iowa Renewable Fuels Infrastructure program. The total cost of the project is $488,944.

“Governor Branstad and I have been strong proponents of renewable fuels. We recognize that Iowa’s success in renewable energy is tied to our abundant access to natural resources and our innovative producers who leverage them,” Reynolds said. “We are pleased to make today’s announcement and hope this will become a model for the nation to follow Iowa’s lead in adopting E-30 for increased consumer choice, cleaner air and better consumer access.”

Iowa received the $250,000 to support the Fueling Our Future pilot project from the U.S. Department of Transportation’s Congestion Mitigation/Air Quality (CMAQ) program to reduce particulate matter (PM-2.5) vehicle emissions by increasing the use of higher blends of bio-based fuels, specifically ethanol and biodiesel. Applicants were required to provide at least a 50 percent match to receive funding. The projects were selected by the Iowa Renewable Fuels Infrastructure Board.

Iowa State University will work closely with both retailers to evaluate consumer perceptions and the impact of increased assess to mid-level biofuels blending options, including impacts on improved air quality.

“Iowa has benefited tremendously from the growth of the renewable fuels industry and it is natural that we would take a leadership role in expanding access to these clean burning, domestically produced renewable fuels,” Northey said.

The Fueling Our Future program was a joint initiative of the Iowa Department of Agriculture and Land Stewardship, the Iowa Department of Transportation, Iowa State University and the Iowa Renewable Fuels Infrastructure Board.

Governor Branstad currently is the Vice Chair of the Governors Biofuels Coalition, which aims to help increase consumer choice and diversify our nation’s transportation fuels through bipartisan engagement on a variety of policy issues, like supporting a robust Renewable Fuel Standard.

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