Renewable fuels bill clears Iowa House

Renewable fuels bill clears Iowa House
Brownfield - Jefferson City,MO,USA
by Lane McConnell. The Iowa House passed legislation that is designed to enhance the availability and use of renewable fuels, such as ethanol and biodiesel. ...
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Wednesday, March 29, 2006, 10:18 AM
by
Lane McConnell

The Iowa House passed legislation that is designed to enhance the availability and use of renewable fuels, such as ethanol and biodiesel. The bill will now head to the Iowa Senate.

Iowa Farm Bureau Federation President Craig Lang said in an IFBF press release,” this bill illustrates what can happen when groups work together for the greater good. Farm Bureau members throughout Iowa want to achieve the highest level of renewable fuels use possible.”

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

The Iowa Renewable Fuels Association’s (IRFA) Executive Director Monte Shaw said in a prepared statement, “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 Iowa Corn Growers Association (ICGA) and the IRFA worked to develop the 25 percent by 2015 Renewable Fuels Standard, which allows gasoline retailers flexibility in meeting the standard through the sale of E10, E85 and biodiesel blends.

Representative Joe Hutter, a Republican from Bettendorf opposed the bill suggesting the next step would be to raise the state tax on wine that wasn't made with Iowa grapes.

"I am not in favor of any tax increases," Hutter says. “Despite the spat over the tax issue, the bill was widely praised as an important step in building demand for ethanol.”

Iowa will have a minimum of 27 ethanol plants capable of producing over 1.7 billion gallons per year and six biodiesel plants that will be able to produce more than 120 million gallons by the end of 2006.