Iowa Governor Terry Branstad has made good on a promise he made to the state’s renewable fuels industry back in January to revitalize Iowa’s rural economy by boosting sales of ethanol and production of biodiesel.
“I want to work with the legislature to change the incentive from 10 percent to 15 percent,” Branstad said of ethanol in Iowa during an address at the annual Iowa Renewable Fuels Summit.
Today, Governor Branstad formally signed a comprehensive renewable fuels bill passed by the state legislature that establishes the nation’s first specific E15 incentive for local retailers to offer the mid-level blend to motorists, a new short-term production incentive program for Iowa biodiesel producers and several other provisions for renewable fuels in the state. “Governor Branstad’s signature completes the long process of putting Iowa in the forefront of renewable fuels policy, not just production,” said IRFA Executive Director Monte Shaw.
Under the new law, retailers will get a 3 cent tax credit for E15 sales. EPA is expected to give final approval for E15 later this summer for use in all 2001 and newer cars and light trucks. Other provisions include 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 Fuels Infrastructure Program (which provides grants for installation of blender, E85 and biodiesel dispensers as well as biodiesel terminal infrastructure), 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.