While the fate of some national biofuels incentives remain up in the air, Iowa takes the bull by the horns and passes its own incentives for biodiesel and ethanol. The State House has followed the State Senate’s lead and passed SF2344, a measure that provides a incentive to producers $.02 per gallon refundable credit on the first 25 million gallons of biodiesel produced in any single plant and enhances the state’s E15 retailer tax credit to help alleviate extra costs to Iowa retailers who want to offer E15 as a registered fuel during the summer driving season. The bill also updates the Iowa Code to define biobutanol as a legal renewable fuel option for Iowans
The Iowa Biodiesel Board welcomed the news:
“Today our legislators have demonstrated foresight in supporting one of the most powerful economic drivers Iowa has – biofuels,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “Not only does this biodiesel policy benefit Iowa’s economy and a rural renaissance, it also props up our nation’s energy security and environment by encouraging domestic fuel production.”
The Iowa Renewable Fuels Association (IRFA) also welcomed the vote that sends the measure to Governor Terry Branstad for his signature:
“The entire Iowa Legislature should be commended for its commitment to ensuring that Iowa not only continues to lead the way in biofuels production, but also in renewable fuels policy,” stated IRFA Policy Director Grant Menke. “S.F. 2344 will help preserve Iowa biodiesel jobs while also expanding Iowa motorists’ access to cleaner-burning, more locally-produced E15, and I applaud Iowa’s elected leaders for standing united with Iowa’s renewable fuels community.”
Branstad is expected to sign the bill.