Retailers get help installing alternative fuel pumps

DES MOINES -- The state will help Iowa retailers pay for alternative fuel pumps under a bill signed into law Monday by Gov. Chet Culver.

The new law also encourages state and local government to use biodiesel when it's available.

The measure is designed to improve access to E85 and biodiesel pumps, both of which are relatively rare in Iowa despite the state's status as a leading producer of the fuels.

Although there are thousands of flexible fuel vehicles in Iowa, only a handful of retail outlets offer the fuel, said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

"Roughly 80 percent of Iowa flexible fuel vehicle owners do not have access to E85 within their ZIP code," Shaw said. "Clearly a lack of infrastructure is a problem."

Elements of the law include:

--Changing a program to include funding for pumps that blend ethanol at different percentages than E-10 or E85.

--Allowing funding for retailers who want to install E85 and biodiesel at one location. Previous state law only allowed one or another.

--Increasing grants for biodiesel pumps from $50,000 to $100,000.

Since Iowa is a leader in producing renewable fuels, Shaw said it should also be a model for the rest of the nation by increasing the percentage of such fuels used by motorists.

"Iowa needs to lead the world not only in the production of renewable fuels, but also in the use of renewable fuels," said Shaw.

Craig Floss, head of the Iowa Corn Growers Association, claimed blending ethanol with gasoline had already worked to slow the soaring price of gasoline.

"Gas prices are already too high, but without ethanol we would be paying 45 cents more per gallon than we already pay," said Floss.

Floss rejected speculation by many people across the country that demand for corn to make ethanol is cutting into food supplies.

"Even with the increased corn exports to feed the world and increased ethanol production we expect to have more corn on hand at the end of this crop year than we did after last year," said Floss.

Culver also signed into law two other environmental bills requiring the recycling of used oil filters and thermometers containing mercury. The governor's signature environmental proposal -- an expansion of the state's bottle deposit law -- was rejected by the Legislature.