Ethanol and hydrogen are being considered as alternative fuels for transportation in Iowa. By using E85 and local ethanol production, 82% of gasoline use in Iowa could be replaced. Hydrogen from steam methane reforming could replace all gasoline usage in the state. Different distribution methods were analyzed, but no single method was found to be the best in terms of cost, capital, environment, and safety. Switching to alternative fuels on a large scale is necessary for the most cost-effective distribution. There is uncertainty in cost estimates for ethanol production from biomass, hydrogen feedstock costs, and future petroleum prices.