E85 Boondoggle of the Day: Iowa RFIB Gives Gas Retailers $13m

Robert Farago
by Robert Farago

Over the next three years, the Iowa Department of Economics Renewable Fuel Infrastructure Board (RIFB) will grant gasoline retailers and their pump-oriented pals $13m. The Tall Corn State is allocating taxpayer money to encourage these commercial enterprises to offer E85 to the customers. More specifically, Ethanol Producer Magazine reveals that “the maximum award can’t exceed 50 percent of the total cost of making the [E85 oriented ] improvements, or $50,000, whichever is less. Projects must be completed within eight months of the award date unless an extension is approved.” Seems fair enough, right? Problem: with gas prices hovering at $1.50 a gallon, E85 is a drug on the market. In other words, why convert to corn juice if no one’s buying? Yes, well, never underestimate the power of the boondoggle: “At its quarterly meeting Dec. 16, the Iowa Department of Economics Renewable Fuel Infrastructure Board approved more than $1.52 million in grants for 43 biodiesel and E85 retailers and terminal operators across the state to expand their renewable fuel infrastructure.” Now, shall we talk about the federal program?

“The 2007 energy bill established a new Renewable Fuel Infrastructure Grant Program in which the U.S. Department of Energy (DOE) is authorized to make grants available to assist retail and wholesale fuel dealers with E85 infrastructure or blender pumps,” the Iowa Department of Economic Development reminds us. “The grants can provide assistance totaling up to 33% of the cost to install, replace, or convert fuel equipment, or $180,000 for a combination of equipment at any one retail location. The DOE must adopt rules for the program by 2009.

“The grant program is subject to annual appropriations from Congress. The American Coalition for Ethanol will post details of the grant program on its website, www.ethanol.org as soon as they become available.”

We can’t wait!

Robert Farago
Robert Farago

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 2 comments
  • R H R H on Dec 26, 2008

    Yay, yet another way to waste my tax dollars! I don't mind biodesel if it's made from items that would otherwise be garbage, but I hate E[0-9][0-9] with a passion! Well...I suppose E00 (real gas) is good :)

  • Anonymous Anonymous on Dec 26, 2008

    Does this mean an Iowa retailer can receive two separate grants one from the feds and one from the state of Iowa totalling upto 83% of the cost to provide E85? Before you know it, the government will be mandating a certain amount of ethanol will be sold since people aren't buying it like they're supposed to. Oh, wait; they already did that didn't they.

  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
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