FOR MORE INFORMATION:
Lucy Norton, Managing Director, 515-225-9242
Monte Shaw, Executive Director, 515-225-9242

FOR IMMEDIATE RELEASE

Passage of Renewable Fuels Bill by Iowa House is Step Forward

    JOHNSTON, Iowa - Mar 28, 2006 - The Iowa Renewable Fuels Association (IRFA) today noted the Iowa House passed legislation designed to boost the availability and use of renewable fuels, such as biodiesel and ethanol. The bill now goes to the Iowa Senate where efforts to strengthen the bill are expected.

“The House renewable fuels bill is a good start,” stated IRFA’s Executive Director Monte Shaw. “The House did a tremendous amount of work and put together a package of incentives that is exciting. At the same time, the IRFA and other groups believe the bill can be made even better for Iowa. We were happy to see the process move forward today and we’ll continue to work to include a meaningful renewable fuels standard in the legislation before it reaches the Governor’s desk.”

The House bill, HF 2754, would – for the first time in Iowa – establish a retail tax credit for E85 and biodiesel. The bill also boosts funding for renewable fuel infrastructure grants. These grants help retailers make the necessary changes to offer biodiesel blends and E85 to consumers.

“To truly harness Iowa’s unique ability to produce renewable fuels, the IRFA believes the bill should include a renewable fuels standard (RFS) that replaces 25% of Iowa’s gasoline with renewable fuels like ethanol and biodiesel by 2015,” stated Shaw. “To be more than window dressing, achievement of the RFS by retailers must be connected to their incentives. I believe there is broad support for that type of incentive-based accountability in the Senate.”

The Iowa Renewable Fuels Association worked with the Iowa Corn Growers Association (ICGA) to develop the 25% by 2015 RFS. The aggressive RFS, not a mandate, allows gasoline retailers flexibility in meeting the standard through the sale of E10, E85, and biodiesel blends.

By the end of 2006, Iowa will have a minimum of 27 ethanol plants capable of producing over 1.7 billion gallons per year. In addition, at least 6 biodiesel plants will be capable of producing more than 120 million gallons per year.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s biodiesel and ethanol producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through legislative and regulatory efforts, education and promotion, and infrastructure development.