This is an excerpt from EERE Network News, a weekly electronic newsletter.

August 30, 2006

Three States Award Nearly $33 Million for Biomass Projects

Illinois, Washington, and Wisconsin have awarded nearly $33 million in grants and loans for biofuels and other forms of biomass energy in the past several weeks. Illinois Governor Rod Blagojevich announced in mid-August five grants of more than $25 million to support biofuels production. The grants will support the construction of three ethanol facilities with the combined capacity to produce 141 million gallons of ethanol per year, and two biodiesel facilities (one new and one expansion) that will increase biodiesel production by 84 million gallons per year. Back in mid-July, Washington Governor Christine Gregoire announced $6.75 million in low-interest loans for seven bioenergy projects, including five biodiesel plants and two anaerobic digesters, which convert livestock waste into methane fuel. And on August 18th, Wisconsin Governor Jim Doyle announced $1 million in grants for a variety of projects related to biofuels, biomass energy, and biobased products. See the press releases from Governor Blagojevich, Governor Gregoire, and Governor Doyle.

Meanwhile, the Pennsylvania Department of Environmental Protection (DEP) has started accepting project applications for the Alternative Fuels Incentive Grant Program (AFIG), which finances the production and use of clean-burning fuels in the sate. AFIG will fund projects that increase the production and use of biodiesel and ethanol, particularly for use as a transportation fuel (biodiesel is sometimes used as a heating fuel). For the first time, AFIG is offering incentives to Pennsylvania producers of biodiesel and ethanol: 5 cents for every gallon produced, with a cap at 12.5 million gallons in a 12-month period. See the DEP press release.