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FOR MORE INFORMATION:
Lucy Norton, Managing Director, 515-225-9242
Monte Shaw, Executive Director, 515-225-9242
FOR IMMEDIATE RELEASE
Iowa Senate Passes Most Aggressive Renewable Fuels Bill in Country
Bill Would Greatly Expand Consumer Access to Biodiesel and E85
JOHNSTON, Iowa - Apr 11, 2006 - The Iowa Renewable Fuels Association (IRFA) today congratulated the Iowa Senate on passage of legislation designed to boost the availability and use of renewable fuels, such as biodiesel and ethanol. The bill now goes back to the Iowa House for consideration.
“This is the most aggressive renewable fuels program in the country,” stated IRFA’s Executive Director Monte Shaw. “The Senate worked hard to strengthen the bill sent over from the House.”
The Senate bill, HF 2754 as amended, creates:
- An aggressive, accountable renewable fuels standard (RFS) starting at 10% in 2009 and increasing to 25% by 2019.
- A new ethanol promotion tax credit for each gallon of ethanol blended into gasoline (replaces existing tax credit beginning in 2009). This incentive is linked to a retailer dealer’s achievement of the RFS schedule. The tax credit increases from 2.5 cents per gallon (c/g) for retailers within 4% of the RFS schedule to 6.5 c/g for retailers meeting or exceeding the RFS schedule.
- A retail tax credit for E85 of 25 c/g (phases out by 2020).
- A retail tax credit for biodiesel blends of 3 c/g (for retailers who sell more than 50% biodiesel blends.
- An expanded infrastructure program designed to help retailers and wholesalers offset the cost of bringing E85 and biodiesel blends to consumers.
“This bill can help Iowa retailers and consumers to truly harness Iowa’s unique ability to produce renewable fuels,” stated Shaw. “The entire state will be a winner. As more of our fuel purchases stay in the state, instead of flowing to foreign countries, Iowa’s economy will grow.”
The renewables bill will stimulate Iowa’s economy by:
- generating $85.5 million in gross state product (GSP) through investment in renewable fueling infrastructure by 2020;
- boosting GSP by $1.82 billion through 2020 by keeping more fuel purchase money in the state (E85 keeps 67% of purchase price in state compared to only 12% for regular gasoline);
- creating as many as 3,950 new jobs through the economy;
- increasing Iowa tax receipts by $75 million through 2020 as a result of the greater economic activity; and,
- saving Iowa consumers an average of nearly $50 million annually through 2020 as purchases of lower cost biodiesel blends and E85 increase.
The Iowa Renewable Fuels Association worked with the Iowa Corn Growers Association (ICGA) to develop an aggressive and accountable 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.
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