INDIANAPOLIS -– Under the leadership of Lt. Gov. Becky Skillman, the Indiana State Department of Agriculture has agreed to work with the Indiana Energy Group to administer a $1.1 million alternative fuels grant program. “We are working to create a culture in Indiana in which it is natural for Hoosiers to use biofuels and companies to want to produce it here,” said Lt. Governor Skillman, who oversees Indiana agriculture and energy policy. “This program is important in making this possible.” The state-administered program, using grant money from the U.S. Energy Department, will pay for the installation of E85 pumps and the use of B20 biodiesel. E85 is an 85 percent ethanol blended fuel, and B20 is a 20 percent soybean oil blended diesel fuel. The grants can pay for 50 percent of the cost of installing an E85 pump, up to $50,000. For B20, the money can be used to buy down half the difference in price for a fleet to use B20 fuel. For example, if B20 is 8 cents per gallon more than petroleum fuel, the grant would pay 4 cent per gallon. Companies, schools, cities and towns all qualify for alternative fuels grants. So far this year, more than $625,663 in alternative fuels grants has been awarded across Indiana. The grants will offset more than 2.1 million gallons of conventional transportation fuel. In 2004, the state awarded $74,937 in alternative fuels grants, offsetting almost 51,000 gallons of traditional fuel. “Indiana currently has 10 E85 pumps, and our goal for is to have at least 40 operational E85 pumps publicly available across the state by the end of 2006, putting us on par with our neighboring states,” said Indiana Agriculture Director Andy Miller. “This grant program will aid retailers in making E85 more available to consumers, and encourage more businesses and communities to use B20.” To receive a grant application, contact the Indiana State Department of Agriculture at (317) 232-8770 and ask for the alternative fuels grant program administrator or visit the ISDA website at