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$25 million sought to start energy plan

(Des Moines Register)Gov. Chet Culver, as anticipated, made a splash Tuesday with his proposals for revving up Iowa's renewable energy industry by seeking an immediate $25 million down payment on his proposed $100 million Iowa Power Fund.

A large section of Culver's budget address to the Legislature was devoted to his pitch for making Iowa the "energy capital of the world" and the "Silicon Valley of the Midwest." He said his plan will lead to greater prosperity for Iowans by helping home-grown companies develop the use of biofuels, wind power and other energy sources that reduce this country's reliance on imported oil.

The Democrat's renewable energy proposals include:

- Creating the $100 million Iowa Power Fund over four years to help energy businesses get started or expand. The first installment of $25 million would come in the current budget year as a supplemental appropriation from the Legislature.

- Overhauling utility regulations, including the adoption of higher renewable power standards aimed at giving market access to independent generators of electricity.

- Setting up an alternative fuel vehicle tax credit equal to 20 percent of the credit allowed on federal tax returns.

- Establishing the new post of director of renewable energy.

While lawmakers are expected to challenge some of the details of Culver's plan, there is strong support from Republicans and Democrats alike for helping Iowa's renewable fuel industry grow.