FOR MORE INFORMATION:
Monte, 515-252-6249

FOR IMMEDIATE RELEASE
April 26, 2010

IRFA Calls on President Obama to Personally
Bridge Congressional Deadlock over Biodiesel Tax Credit

Ethanol Industry Faces Same Challenge at End of 2010

JOHNSTON, IA – On the eve of President Barack Obama’s visit to Iowa, the Iowa Renewable Fuels Association (IRFA) called upon the President to personally intervene in the stalemate between the U.S. House and Senate that is preventing the reinstatement of the biodiesel blenders tax credit. Since Congress inexplicably allowed the tax credit to expire at the end of 2009, the U.S. biodiesel industry has virtually shut down costing hundreds of jobs in Iowa and thousands nationwide.

“While we welcome the President to Iowa to talk about jobs, we urge him to pick up the phone and talk with Congressional leaders about reinstating the biodiesel tax credit prior to their Memorial Day recess,” stated IRFA Past President Denny Mauser, a board member of biodiesel producer Western Iowa Energy. “There is no question that hundreds of Iowans would be called back to work within 24 hours of President Obama signing the biodiesel tax credit back into law.  Nationally, there would be thousands of green collar jobs reinstated virtually overnight. This calls for immediate Presidential leadership.”

Already facing tough economics, nearly every biodiesel refinery in Iowa has shut down and laid off workers since the biodiesel blenders tax credit expired at the end of 2009.  With almost no opposition to the biodiesel tax credit itself, both the U.S. Senate and U.S. House of Representatives have passed bills to reinstate the tax credit.  However, they cannot agree on how to pay for the provision, so the tax credit has been nonexistent for over 115 days.

Iowa’s ethanol industry is also concerned about the situation. Many ethanol refineries have invested millions in equipment to remove some corn oil from their distillers grains co-product.  The crude corn oil can be used as a feedstock for biodiesel production.  Also, the ethanol blenders tax credit is set to expire at the end of this year.  Ethanol advocates are working to extend the tax credit to ensure there is not a similar hemorrhaging of green collar jobs from the ethanol industry.

“The ethanol industry is watching this closely,” stated IRFA President Bill Couser, a board member of ethanol producer Lincolnway Energy.  “If America is serious about green collar jobs and energy security, there needs to be a long-term extension of both the ethanol and biodiesel tax credits.  If not, the job losses will intensify and ripple through other segments of our economy.”

Iowa is the leader in renewable fuels production.  Iowa has 14 biodiesel refineries capable of producing nearly 320 million gallons of biodiesel annually.  In addition, Iowa has 39 ethanol refineries capable of producing nearly 3.3 billion gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s ethanol and biodiesel producers.  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:  www.IowaRFA.org.