Posted Oct. 5, 2010

In a letter written Sept. 29, the U.S. DOE reiterated its support of renewable fuels and highlighted opportunities for state, local and tribal grantees under the American Recovery and Reinvestment Act of 2009. "With over 7 million flex-fuel vehicles already on the road and millions more being produced every year, the market for renewable fuels will continue to grow," said the letter, which was signed by Kathleen Hogan, deputy assistant secretary for energy efficiency. "Therefore, there is a need to increase the number of compatible fueling dispensers in order to meet our nation's energy goals, particularly in renewable fuel producing regions of the nation in the near term."

The letter was sent to state Energy Program and Energy Efficiency & Conservation Block Grant grantees. It encouraged those groups to consider allocating or increasing the amount of funding for renewable fuels infrastructure investments. The DOE has a program overview document to help identify partners and will work with USDA field offices and other stakeholders to provide needed technical assistance. "Obligations and DOE payments to grantees remain a key measure to evaluate Recovery Act performance; however, if funds have not been obligated by grantees and are available, targeted investments to improve renewable fuel infrastructure are a valuable use of Recovery Act funds for meeting the strategic energy goals of the nation," the letter said.

The DOE's efforts did not go unnoticed. Growth Energy commended the DOE's efforts to address infrastructure needs. "If we are truly going to realize our nation's energy independence goals, we need to ensure that our entire vehicle fleet and fuel infrastructure are ready to use expanded U.S. ethanol production," CEO Tom Buis said. "Each additional flex fuel vehicle and blender pump gives consumers the option of filling up with clean, renewable ethanol to create a more secure energy future for this country."

The Renewable Fuels Association called the DOE's letter "very positive news." Modernizing the U.S. fuel infrastructure is critical, said Matt Hartwig, communications director. "Some of that has already been accomplished through the investments in biofuel technology, such as the ethanol tax incentive. And we should continue those policies," he said. "At the same time, we should be investing in blender pumps and other infrastructure that moves America away from a strict reliance on oil. While full details and the total amount of money that may be available are still forthcoming, this initiative is the exact thing of which we need more."

More information can be found at this DOE link. In addition, the DOE plans to host a webinar on this topic soon.