IDALS awards $7 million in renewable fuels infrastructure grants

by | Dec 1, 2020 | 5 Ag Stories, News

The biofuels industry has taken a severe hit during the COVID-19 pandemic. As the leading producer of biofuels in the United States, Iowa has taken a lion?s share of this hit. Work is being done on the national level to restore integrity to the Renewable Fuels Standard and calls are being made for the Environmental Protection Agency (EPA) to release next year?s Renewable Volume Obligations, on which they continue to drag their feet.

But what is being done closer to home for those retailers who have suffered an economic setback and have been slowed to make expensive improvements to the renewable fuels infrastructure? It is nearly impossible to make these upgrades when the fuel market took a pandemic-related downturn.

Audio: Full interview with Iowa Agriculture Secretary Mike Naig

Yesterday, the Iowa Department of Agriculture and Land Stewardship announced $7 million in grants that were awarded through the Renewable Fuels Retail Recovery program. According to IDALS, the program ?offers relief funds to help gas stations, truck stops, co-ops, and other renewable fuels retailers recover from the business disruptions and lost demand caused by the COVID-19 pandemic.

To date, the program has funded 101 ethanol projects and 137 biodiesel projects at 167 fuel retail locations. The $7 million in funds came from monies allocated from the CARES Act by Governor Kim Reynolds.

Iowa Secretary of Agriculture Mike Naig says that the impact of COVID-19 has been felt across the whole renewable fuels sector, from the farmers to the retailers.

Naig adds that it is important to help retailers at all levels upgrade the infrastructure to meet the increasing demand for biofuels in the state, even during an economic downturn and a weakening of demand, directly related to COVID-19. Naig says that it does no good to have a quality product sitting in storage tanks with no way of getting it to the consumer. From large retail chains to small ?mom & pop? stations, these funds are helping bring these upgrades across the state.

Secretary Naig talks about the fact that even though business slowed for many retailers in 2020, they still need to do maintenance or make improvements on their infrastructure. Naig even pulls it back further to look at the effects COVID had on the contractors and equipment suppliers. By helping the retailers with grants, those monies then will trickle further up the chain to those whose business depends on supplying the service and equipment.