The Iowa Biodiesel Board (IBB) is welcoming a proposal that would raise the state’s fuel tax. This news release from the group says the proposed state legislation would give a partial exemption to the new tax for diesel blended with at least 11 percent biodiesel (B11), encouraging use and growth of the green fuel.
The proposed tax increase (HF 351 and SF 257) is 10 cents a gallon for both diesel and gasoline as part of a plan to address Iowa’s infrastructure needs. A provision provides a 3 cent exemption for biodiesel blends of B11 and above for 5 years.
The IBB, whose membership includes biodiesel producers, soybean farmers and other stakeholders, called the biodiesel nod a bold leadership move.
“This is smart policy on the part of our state leaders that will benefit the entire state, and we thank them,” said Grant Kimberley, executive director of IBB. “Doing everything we can to encourage biodiesel production and usage generates significant economic activity for Iowa. Every gallon of biodiesel we use at home is one less equivalent gallon from the Middle East, and keeps money in our state.”
The bill has a 5-year sunset, but the IBB is hoping to see that extended to 10 years in the future.