STATEHOUSE (Feb. 15, 2010) - A key Senate committee today voted in support of extending grant opportunities to qualified biofuel projects across the state, according to State Sen. Marlin Stutzman (R-Howe).

Members of the Senate Committee on Energy and Environmental Affairs voted 7-0 in support of House Bill 1261, sponsored by Stutzman.

“Opening up more grant opportunities is a good way to help further promote the use of alternative energy across our state,” Stutzman said. “Investing in the production and distribution of various biofuels is costly and these grant monies could help individuals and corporations continue to move forward.”

Currently, grants are available to local governments, retailers, school corporations and state universities to install fueling pumps for E85 - a blend of 15 percent petroleum-based gasoline and 85 percent ethanol. Stutzman said under the bill, the E85 Fueling Station Grant Fund would be renamed the Agricultural Biomass Infrastructure Grant Fund to widen the usage of already-available monies.

“This bill would allow the Indiana State Department of Agriculture to use money in the existing E85 Fueling Station Grant Fund to award competitive grants for investments in biofuel infrastructures,” Stutzman said. “Qualified projects would use renewable energy systems to produce or distribute biofuels from agricultural-based biomass such as wood, crops and livestock waste.”

Stutzman said biomass energy is a form of electricity produced from plant waste and animal matter. Biomass can be converted to useable forms of energy, like methane gas or transportation fuels, such as ethanol and biodiesel.

Stutzman said funding for these grants is available through corn check-off funds and has no cost to Indiana taxpayers.

Biomass fuels provide about 4 percent of the energy used in the U.S and researchers are trying to develop ways to burn more biomass and less fossil fuel, according to the U.S. Energy Information Administration.

“Although biofuels are only part of the solution to reducing our dependence on foreign oil, I think it is critical to provide incentives for their growth,” Stutzman said.

House Bill 1261 now moves to the full Senate for consideration.

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