Energy Conservation
Key Issues:Energy in Iowa
Energy in Iowa

Following is an overview of Iowa's consumption and production of transportation fuels, electricity, and heating fuels, as well as the mandates and initiatives that affect the state's energy supply and economy.
Transportation fuels (gasoline and diesel fuel)
Iowa, the country's largest ethanol producer, accounts for about 25% of the national supply. More than 36 ethanol plants operate in Iowa, and many more are under construction. Iowa's gasoline and diesel fuel are transported by pipeline.
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Coal-fired plants produce most of the electricity used by Iowans. More than 90% of the coal used in Iowa is low-sulfur coal transported from Wyoming by rail. Iowa has one nuclear plant - located northwest of Cedar Rapids - that produces 10% of the state's electricity. Although Iowa's renewable electricity includes biomass and hydroelectric sources, the many wind turbines in the state make it a national leader in wind power. Natural gas - the source of about 6% of Iowa's electricity - comes via pipeline from Canada.
Heating Fuels
About two-thirds of Iowa's households use natural gas coming from Canada as their primary heating fuel. Liquefied petroleum gas (LPG), sometimes referred to as propane, heats about 16% of the state's homes. Nearly 97% of the nation's LPG supplies are produced in North America.
Natural gas
Fuel oil
Source: U.S. Department of Energy,
2000 Census data
Iowa's existing energy mandates and incentives
Ethanol retail tax credit
Since 2006, Iowa has offered retailers a tax credit of $.25 per gallon on E85 fuel sold. The credit will be reduced each year after 2009 until it is phased out in 2020.
Ethanol Infrastructure Cost-Share Program
Ethanol facilities that convert or build infrastructure to distribute E85 fuel are eligible to receive up to $325,000 in state funding.
Alternative fuel loan programs
Alternative fuel production facilities are eligible for low or discounted interest rates related to certain loan programs.
Alternative fuel vehicles grants
Individuals and organizations that have purchased alternative fuel vehicles for research or demonstration purposes are eligible for grants.

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