The Iowa Legislature today approved comprehensive renewable fuels legislation intended to increase E15 sales and biodiesel production.
Iowa Renewable Fuels Association Executive Director Monte Shaw says the bill includes a new 3 cent per gallon retailer tax credit for E15 sales, allowing Iowa to lead the way in E15 public policy. “With final E15 approval expected from the EPA this summer, Iowa retailers will have an incentive to begin offering E15 on day one. E15 will be an option for Iowa motorists only if Iowa retailers choose to offer the higher blend. The E15 tax credit is an important tool for retailers looking to add lower cost E15 to their product mix.”
The bill also created a short-term production incentive for Iowa biodiesel producers. “The biodiesel industry is really going through a shaking out process right now,” added Shaw. “The states surrounding Iowa have taken aggressive steps to protect their biodiesel producers. This new production incentive will help Iowa biodiesel producers compete with neighboring states. Ramping up Iowa biodiesel production will create thousands of direct and indirect jobs.”
The bill contains a number of other provisions, including misfueling liability protection for retailers; an enhanced E85 retailer tax credit; an extension of the biodiesel retailer tax credit for blends of B5 and higher; $3 million in annual funding for Iowa’s Renewable Fuel Infrastructure Program; modifications to Iowa’s 25% Iowa renewable fuels standard and ethanol tax credit and codifying the ASTM fuel specification for biodiesel blends between 6 and 20 percent.