INDIANAPOLIS – The Indiana State Department of Agriculture signed a memorandum of understanding with the Indiana Energy Group to administer the $1.1 million Alternative Fuels Grant Program, formerly known as the Alternative Fuel Vehicle 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 Alternative Fuels Grant Program is comprised of grant money from the U.S. Department of Energy, administered by the state of Indiana. The program will pay for the installation of E-85 pumps and the use of B-20 biodiesel. E-85 is an 85 percent ethanol blended fuel, and B-20 is a 20 percent soybean oil blended diesel fuel. The grants can pay for 50 percent of the cost of in-stalling an E-85 pump, up to $50,000. For B-20, the money can be used to buy down half the difference in price for a fleet to use B-20 fuel. For example, if B-20 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 E-85 pumps, and our goal for is to have at least 40 operational E-85 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 E-85 more available to consumers, and encourage more businesses and com-munities to use B-20.” 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 Web site at www.in.gov/isda/.