FOR IMMEDIATE RELEASE
May 21, 2012
Iowa Biodiesel Production Remains Strong in First Quarter
Biodiesel Industry Supports Over 7,000 Iowa Jobs
JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) announced today that biodiesel production remained strong during the first quarter of 2012 despite the expiration of the federal biodiesel tax credit. According to figures released by the Iowa Department of Revenue (DOR), 10 Iowa biodiesel plants produced 41.9 million gallons from January through March.
“Despite losing the federal tax credit, biodiesel production in Iowa remains on pace with 2011 production, although down from year-end levels,” said IRFA Executive Director Monte Shaw. “This is a clear sign that Iowa’s new biodiesel production tax credit is having a positive impact. With additional production set to come on line in Iowa, we hope to see these numbers increase throughout the year.”
In 2011, the Iowa Legislature enacted a short-term, modest biodiesel production tax credit to help Iowa’s biodiesel community compete against states that provide large biodiesel incentives. The Iowa program went into effect on January 1, 2012 – the same day the federal biodiesel program expired.
“We knew there would be a transition period in 2012 and it was important to give the 7,000-plus jobs tied to Iowa biodiesel production a chance to survive and thrive,” added Shaw. “The initial DOR biodiesel numbers are a sign Iowa is headed in the right direction. Tax credits are only earned if biodiesel is produced –meaning jobs are sustained and the economy is strengthened.”
A study released earlier this year by economist John Urbanchuk, technical director of Cardno ENTRIX, found that biodiesel production:
- Supported 7,350 Iowa jobs;
- Boosted Iowa GDP by nearly $600 million; and,
- Generated $350 million in additional Iowa household income.
The complete study can be found at: www.iowarfa.org/RenewableFuelsPowerIowaEconomyThroughRecession.php
Iowa is the leader in renewable fuels production. Iowa has 41 ethanol refineries capable of producing nearly 3.7 billion gallons annually. In addition, Iowa has 13 biodiesel facilities with the capacity to produce 320 million gallons annually.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.
For more information, visit the Iowa Renewable Fuels Association website at: