Representative Dave Loebsack (D-IA) Introduces Renewable Fuel Infrastructure Act

On February 12, Representative Dave Loebsack (D-IA) introduced the Renewable Fuel Utilization, Expansion and Leadership (RE-FUEL) Act. The bill would establish a competitive grant program through the U.S. Department of Agriculture (USDA) to award grants of up to $100,000 for renewable energy fueling infrastructure projects related to biofuels, hydrogen, tanks, piping, and electric vehicle projects. Grantees will be required to provide a match of at least 30 percent of non-federal funds to the project. According to Representative Loebsack, "I believe in making things in America and there is no reason our fuel sources shouldn't be made here as well . . . It's also important that consumers are able to choose where their fuel source comes from when they go to fill up."

The program can be applied to new infrastructure or to retrofit existing infrastructure. Funding would be provided by setting aside one percent of the royalties collected from oil and gas leases under the Outer Continental Shelf Lands Act (this would have generated $54.34 million in 2013). Priority would be given to projects in rural areas. The legislation could help bridge the gap between growing biofuels supplies and lagging infrastructure, providing greater consumer access to biofuels. The move was applauded by renewables groups, such as the Renewable Fuels Association, which said that the RE-FUEL Act would help meet the growing consumer demand for E15 and E85, especially in the Midwest.

According to Representative Loebsack, "we must do more to decrease our dependence on foreign oil, expand our use of renewable energy sources that boost economic development in our rural areas, and promote homegrown fuel sources such as biofuels and wind power."