JOHNSTON, IOWA – Today, Secretary Mike Naig unveiled the details of the $7 million Iowa Renewable Fuels Recovery Program that Iowa Governor Kim Reynolds first announced on June 30. The new program, which utilizes the state’s CARES Act funding, provides grants to Iowa fuel retailers that add E15, B11, and higher biofuel blends to their stations.
“IRFA members want to thank Governor Reynolds and Secretary Naig for seeing the many benefits biofuels provide to the state of Iowa and prioritizing their growth,” said Iowa Renewable Fuels Association Policy Director Nathan Hohnstein. “Iowa fuel retailers and biofuel producers have both been struggling under the weight of demand destruction from COVID-19. These grants will help retailers stay competitive by adding low-cost, home-grown biofuel blends and provide a demand boost for Iowa’s biofuels producers.”
These new grants are separate from Iowa’s existing biofuel infrastructure program, the Renewable Fuels Infrastructure Program (RFIP), and RFIP funds cannot be used on the same equipment or costs.
The program will provide up to $30,000 per approved project, and applicants may submit both ethanol and biodiesel-related applications for a single site for a maximum funding of $60,000 per site. Funds will be awarded to projects completed by December 30, 2020 or for purchasing equipment delivered by December 30, 2020 and installed at a later date. The retailer must commit to selling the qualifying biofuel blend for a minimum of 60 months. To provide flexibility, the 60-month commitment may begin anytime within 24 months of project completion. Forty percent of the funds are being initially reserved specifically for Iowa’s smaller fuel retailers, those with ten fuel stations or less.
To apply for a grant or learn more about the new program visit: https://iowaagriculture.gov/grants