Illinois Department of Commerce and Economic Opportunity and Illinois Environmental Protection Agency Highlight Benefits of Biofuels to Business and Agricultural Leaders
SPRINGFIELD – As part of his comprehensive long-term energy plan to replace Illinois’ dependence on foreign oil with homegrown alternatives, Gov. Rod R. Blagojevich is encouraging businesses and citizens throughout Illinois to consider using biofuels when fueling cars, trucks and other equipment. To assist the business community in developing systems to distribute alternative fuels, the Illinois Department of Commerce and Economic Opportunity (DCEO) and Illinois Environmental Protection Agency (IEPA) hosted a seminar at the College of Lake County in Grayslake today on the benefits of biodiesel and E-85 (85 percent ethanol, 15 percent gasoline).
State agency leaders met in Grayslake to explain the increasing importance of biofuels as a part of our nation’s energy portfolio to reduce our need for foreign oil, as well to talk about the important economic and environmental benefits of biofuels.
“If we continue making investments now in ethanol and other biofuels, within ten years, we’ll be able to produce enough energy from our own natural resource to cut our dependence on foreign energy in half. That means billions of our hard-earned dollars will stay here at home, in our economy creating more jobs, rather than leaving Illinois forever. We have the resources. We have the technology. We have the expertise. And if we start today, we can solve this problem in the next ten years. No other state can say that. And the federal government hasn’t even conceived of that yet. But we can do it here in Illinois, and expanding the use of biofuels through this kind of seminar is going to help us do just that,” Gov. Blagojevich said.
“Fleet managers and individuals are looking for ways to reducing fuel costs, especially when prices rise. Today, renewable fuels are more affordable than ever, with E-85 often costing 15 to 50 cents cheaper a gallon than regular gasoline,” said Illinois EPA Director Doug Scott. “Biofuels also support our state’s economy and Illinois’ agricultural community, in addition to having important environmental benefits.”
“With Gov. Blagojevich’s vision, we are now leading the nation with programs to support biofuels, and we are aggressively supporting this growing industry to expand our economy in a way that is forward thinking and environmentally responsible. We are opening the door to a new era of energy independence here in Illinois,” DCEO Director Jack Lavin said.
Attendees heard about Gov. Blagojevich’s grant program for retailers to install E-85 pumps and the rebate programs for consumers using E-85 and biodiesel, and the various local governments, businesses, mass transit districts, and school district fleets using these fuels and the many benefits expected from using them. Gas retailers can learn about the E-85 Clean Energy Infrastructure Program guidelines by visiting www.commerce.state.il.us or by calling 217/785.5082.
Illinois is a national leader in biodiesel use with more than 30 million gallons being consumed annually, and still growing. In June of 2003, Gov. Blagojevich signed into law a complete state sales tax exemption for biodiesel blends of 11 percent or higher, as well as E-85. In 2004, there were just 30 million gallons of biodiesel consumed in the entire country. Biodiesel sales have increased 30-fold in Illinois. Illinois is also a leader in E-85 use. The total number of E-85 stations now in Illinois has grown dramatically from 14 in 2004 to approximately 130 stations.
Gov. Blagojevich’s recently unveiled energy plan will help free consumers from the grip of foreign oil and gas interests by giving drivers and homeowners alternatives to the high cost of gasoline, stabilize energy prices, give Illinois farmers new markets for their crops and create 30,000 new jobs. The Governor’s plan sets a goal of replacing 50 percent of the state’s energy supply with homegrown fuels by 2017. Illinois would be the first state to reach this level of energy independence.
The Governor proposes investing $100 million over the next 5 years to build up to 20 new ethanol plants across Illinois. The additional ethanol production would generate an estimated $1.7 billion in business investment. The Governor also proposes investing an additional $100 million over the next ten years to build four plants in downstate Illinois using new technology to create ethanol made from plant waste materials like corn husks and wood pulp – or “cellulosic ethanol.” This means boosting the state’s annual ethanol production by more than 200 percent and meeting 50 percent of gasoline needs by 2017. And, the Governor’s plan would invest $25 million to help build five new biodiesel plants, increasing the state’s production by 200 percent to 400 million gallons per year or the equivalent to 25 percent of the state’s annual diesel fuel needs by 2017. This additional biodiesel production will generate another $225 million in business investment in Illinois. This plan would create almost 20,000 construction jobs and 10,000 permanent jobs.
As Illinois produces more biofuels, another major goal of the Governor’s energy plan is to make sure every gas station in Illinois offers 85 percent ethanol fuel (E-85) by 2017. To reach this goal, the Governor proposes investing $30 million over the next 5 years to add 900 more E-85 pumps statewide by 2010, meaning 20 percent of Illinois gas stations will offer E-85. Illinois will also work with automakers to offer more flexible fuel vehicles to Illinois drivers, by providing up to $25 million incentives to produce more vehicles that can run on E-85. The state will also increase public awareness about E-85 and promote use by local governments and private fleets.
More information on the locations of E-85 and biodiesel stations, along with the application materials for E-85 and biodiesel rebates, can be found at www.illinoisgreenfleets.org.