Iowa's Renewable Energy and Infrastructure Impacts, TR-593, 2010

The federal government is aggressively promoting biofuels as an answer to global climate change and dependence on imported sources of energy. Iowa has quickly become a leader in the bioeconomy and wind energy production, but meeting the United States Department of Energy’s goal having 20% of U.S. transportation fuels come from biologically based sources by 2030 will require a dramatic increase in ethanol and biodiesel production and distribution. At the same time, much of Iowa’s rural transportation infrastructure is near or beyond its original design life. As Iowa’s rural roadway structures, pavements, and unpaved roadways become structurally deficient or functionally obsolete, public sector maintenance and rehabilitation costs rapidly increase. More importantly, costs to move all farm products will rapidly increase if infrastructure components are allowed to fail; longer hauls, slower turnaround times, and smaller loads result. When these results occur on a large scale, Iowa will start to lose its economic competitive edge in the rapidly developing bioeconomy. The primary objective of this study was to document the current physical and fiscal impacts of Iowa’s existing biofuels and wind power industries. A four-county cluster in north-central Iowa and a two-county cluster in southeast Iowa were identified through a local agency survey as having a large number of diverse facilities and were selected for the traffic and physical impact analysis. The research team investigated the large truck traffic patterns on Iowa’s secondary and local roads from 2002 to 2008 and associated those with the pavement condition and county maintenance expenditures. The impacts were quantified to the extent possible and visualized using geographic information system (GIS) tools. In addition, a traffic and fiscal assessment tool was developed to understand the impact of the development of the biofuels on Iowa’s secondary road system. Recommended changes in public policies relating to the local government and to the administration of those policies included standardizing the reporting and format of all county expenditures, conducting regular pavement evaluations on a county’s system, cooperating and communicating with cities (adjacent to a plant site), considering utilization of tax increment financing (TIF) districts as a short-term tool to produce revenues, and considering alternative ways to tax the industry.

The Adoption of Technologies, Policies, and Systems for Improving Fleet Fuel Performance, 2007

The dramatic rise in fuel prices and growing environmental concerns are pressing freight transportation companies to pursue new systems and methods to improve fuel efficiency and reduce their environmental impact. While select major carriers appear to be leading efforts to adopt technologies that support a dramatic improvement in fuel performance, there appears to be little understanding as to the breadth and depth of efforts being taken by the broader motor carrier community, consisting of over 20,000 companies of all sizes. The purpose of this study was to investigate the level of adoption of technologies and policies to support improved fuel efficiency among motor carrier fleets.

Revised Iowa State Energy Conservation Plan : 1979 - 1980, 1979

The Revised Iowa Energy Conservation Plan: 1979-1980 is a blue print for the state's continued participation. The original Plan contained descriptions of more than 70 programs underway or conceived for state implementation with federal dollars. The Revised Plan contains only those programs to be funded in Federal dollars. The projects include five mandatory programs identified by DOE and several projects selected for funding by the Iowa Energy Policy Council (EPC), the policy making board which governs the state energy agency. The 18-member Council selected the conservation programs at its March 20-21, 1979 meeting. The Council retains the right to amend both the Plan and the budget at any time for the duration of the three-year program.

An Analysis of the Link between Ethanol, Energy, and Crop Markets, November 2006

This study analyzes the impact of price shocks in three input and output markets critical to ethanol: gasoline, corn, and sugar. We investigate the impact of these shocks on ethanol and related agricultural markets in the United States and Brazil. We find that the composition of a country’s vehicle fleet determines the direction of the response of ethanol consumption to changes in the gasoline price. We also find that a change in feedstock costs affects the profitability of ethanol producers and the domestic ethanol price. In Brazil, where two commodities compete for sugarcane, changes in the sugar market affect the competing ethanol market.

Adoption Subsidies and Environmental Impacts of Alternative Energy Crops, March 2007

We provide estimates of the costs associated with inducing substantial conversion of land from production of traditional crops to switchgrass. Higher traditional crop prices due to increased demand for corn from the ethanol industry has increased the relative advantage that row crops have over switchgrass. Results indicate that farmers will convert to switchgrass production only with significant conversion subsidies. To examine potential environmental consequences of conversion, we investigate three stylized landscape usage scenarios, one with an entire conversion of a watershed to switchgrass production, a second with the entire watershed planted to continuous corn under a 50% removal rate of the biomass, and a third scenario that places switchgrass on the most erodible land in the watershed and places continuous corn on the least erodible. For each of these illustrative scenarios, the watershed-scale Soil and Water Assessment Tool (SWAT) hydrological model (Arnold et al., 1998; Arnold and Forher, 2005) is used to evaluate the effect of these landscape uses on sediment and nutrient loadings in the Maquoketa Watershed in eastern Iowa.

Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets, 2007

Projections of U.S. ethanol production and its impacts on planted acreage, crop prices, livestock production and prices, trade, and retail food costs are presented under the assumption that current tax credits and trade policies are maintained. The projections were made using a multi-product, multi-country deterministic partial equilibrium model. The impacts of higher oil prices, a drought combined with an ethanol mandate, and removal of land from the Conservation Reserve Program (CRP) relative to baseline projections are also presented. The results indicate that expanded U.S. ethanol production will cause long-run crop prices to increase. In response to higher feed costs, livestock farmgate prices will increase enough to cover the feed cost increases. Retail meat, egg, and dairy prices will also increase. If oil prices are permanently $10-per-barrel higher than assumed in the baseline projections, U.S. ethanol will expand significantly. The magnitude of the expansion will depend on the future makeup of the U.S. automobile fleet. If sufficient demand for E-85 from flex-fuel vehicles is available, corn-based ethanol production is projected to increase to over 30 billion gallons per year with the higher oil prices. The direct effect of higher feed costs is that U.S. food prices would increase by a minimum of 1.1% over baseline levels. Results of a model of a 1988-type drought combined with a large mandate for continued ethanol production show sharply higher crop prices, a drop in livestock production, and higher food prices. Corn exports would drop significantly, and feed costs would rise. Wheat feed use would rise sharply. Taking additional land out of the CRP would lower crop prices in the short run. But because long-run corn prices are determined by ethanol prices and not by corn acreage, the long-run impacts on commodity prices and food prices of a smaller CRP are modest. Cellulosic ethanol from switchgrass and biodiesel from soybeans do not become economically viable in the Corn Belt under any of the scenarios. This is so because high energy costs that increase the prices of biodiesel and switchgrass ethanol also increase the price of cornbased ethanol. So long as producers can choose between soybeans for biodiesel, switchgrass for ethanol, and corn for ethanol, they will choose to grow corn. Cellulosic ethanol from corn stover does not enter into any scenario because of the high cost of collecting and transporting corn stover over the large distances required to supply a commercial-sized ethanol facility.

Low-Income Home Energy Assistance Program and Weatherization Program Interim Study Committee, 2007

The Low-Income Home Energy Assistance Program (LIHEAP) and Weatherization Program Interim Study Committee was created by the Legislative Council and charged to review issues involving the Low-Income Home Energy Assistance Program (LIHEAP) and Weatherization Program including financial assistance, the application and intake processes, the community action agencies' assessment and resolution proposal, and whether to involve the Department of Human Services in the administration of the programs to enable low-income persons to access additional assistance programs through a single location.

Iowa Energy and Waste News, Winter 2007, Vol. 1, no.1

Newsletter produced by Iowa Department of Natural Resources about energy and waste in Iowa

Iowa Climate Change Advisory Council Final Report 2008.

On April 27, 2007, Iowa Governor Chet Culver signed Senate File 485, a bill related to greenhouse gas emissions. Part of this bill created the Iowa Climate Change Advisory Council (ICCAC), which consists of 23 governor-appointed members from various stakeholder groups, and 4 nonvoting, ex officio members from the General Assembly. ICCAC’s immediate responsibilities included submitting a proposal to the Governor and General Assembly that addresses policies, cost-effective strategies, and multiple scenarios designed to reduce statewide greenhouse gas emissions. Further, a preliminary report was submitted in January 2008, with a final proposal submitted in December 2008. In the Final Report, the Council presents two scenarios designed to reduce statewide greenhouse gas emissions by 50% and 90% from a 2005 baseline by the year 2050. For the 50% reduction by 2050, the Council recommends approximately a 1% reduction by 2012 and an 11% reduction by 2020. For the 90% reduction scenario, the Council recommends a 3% reduction by 2012 and a 22% reduction 2020. These interim targets were based on a simple extrapolation assuming a linear rate of reduction between now and 2050. In providing these scenarios for your consideration, ICCAC approved 56 policy options from a large number of possibilities. There are more than enough options to reach the interim and final emission targets in both the 50% and 90% reduction scenarios. Direct costs and cost savings of these policy options were also evaluated with the help of The Center for Climate Strategies, who facilitated the process and provided technical assistance throughout the entire process, and who developed the Iowa Greenhouse Gas Emissions Inventory and Forecast in close consultation with the Iowa Department of Natural Resources (IDNR) and many Council and Sub-Committee members. About half of the policy options presented in this report will not only reduce GHG emissions but are highly cost-effective and will save Iowans money. Still other options may require significant investment but will create jobs, stimulate energy independence, and advance future regional or federal GHG programs.

Report on the Iowa Office of Energy Independence for the year ended June 30, 2008

Report on the Iowa Office of Energy Independence for the year ended June 30, 2008

Business Sphere, Vol. 21, no.1

These are exciting days in Iowa and the Upper Midwest—the preferred location for developing the green economy and the renewable energy industry. Forward looking policies of Governor Chet Culver, who has set a goal of making our state energy independent, and a ready response to new opportunities are moving Iowa forward in the vanguard of energy transformation. The adoption and consumption of alternative energy will continue to increase. We have succeeded where others are just beginning because we have the grain and crop residues that have made Iowa first in biofuels, sustained winds to get more of our electricity from wind than any other state, and research universities that are hotbeds of renewable energy innovation.

Final Report Energy Efficiency Plans and Programs Study Committee, February 2009

The Legislative Council created the Energy Efficiency Plans and Programs Study Committee for the 2008 Legislative Interim pursuant to the passage of S.F. 2386 during the 2008 Legislative Session, which provided, in Section 8: The Legislative Council is requested to establish an interim study committee to examine the existence and effectiveness of energy efficiency plans and programs implemented by gas and electric public utilities, with an emphasis on results achieved by current plans and programs from the demand, or customer, perspective, and to make recommendations for additional requirements applicable to energy efficiency plans and programs that would improve such results. In conducting the study and developing recommendations, the Committee shall consider testimony from the Iowa Utilities Board, rate and nonrate-regulated gas and electric utilities, the Consumer Advocate, state agencies involved with energy efficiency program administration, environmental groups and associations, and consumers.

Report on the Iowa Office of Energy Independence for the year ended June 30, 2009

Report on the Iowa Office of Energy Independence for the year ended June 30, 2009

Wind Energy Where Wind and Innovation Work, 2010

Centrally located in America’s upper Midwest, Iowa lies in the heart of a 12-state region that will have installed an average of 2,701 mfi per year through 2014. In 2009 alone, this region, which is within one day delivery from Iowa, installed turbines valued at $7.8 billion! Once you understand how this exploding growth in the market intersects with the supply chain established by over 250 Iowa companies that are already providing components and services to wind energy manufacturers, you have an outstanding picture of exactly why all major wind manufacturing components are made in Iowa.