New rules aid ethanol consumers

The Environmental Protection Agency has just approved a rule that allows E15 ethanol to be sold to vehicles 10 years old or younger. Effective Friday, E15 retailers will also be eligible for a 3-cent per gallon tax credit for E15 ethanol.

Monte Shaw of the Iowa Renewable Fuels Association (IRFA) said retailers with blender pumps can take advantage of the new incentive now.

?With the EPA in the process of clearing the final hurdles, now is the time for all retailers to evaluate how E15 could fit into their business model,? said Shaw. ?It is important to note that more than 74% of gasoline goes into vehicles eligible to use E15.?

E15 ethanol refers to the fact that the blend is 15 percent ethanol and 85 percent gasoline. E85 ethanol is 85 percent ethanol and 15 percent gasoline.

The state of Iowa offers numerous incentives to use renewable fuels. Among those are the 10-cent per gallon tax credit for E85, the 3-cent per gallon tax credit for biodiesel blinds of B2 or higher, E100 tax credit of 8 cents per gallon and infrastructure grants of up to $50,000 to install biodiesel, E85 and blender pumps.

Iowa is the leader in renewable fuels production. Iowa has 41 ethanol refineries capable of producing nearly 3.7 billion gallons annually. In addition, Iowa has 11 biodiesel facilities with the capacity to produce over 225 million gallons annually.