FUNDED BY SOYBEAN CHECKOFF DOLLARS  
 
FOR IMMEDIATE RELEASE
Date: February 10, 2006
Contact: Ann Millsap
Publications Director
1 800-383-1423
  
 



BIODIESEL BILL PASSES HOUSE,
AWAITS GOVERNOR'S SIGNATURE

URBANDALE, Iowa - Yesterday, the House passed HF 2754, the Iowa Renewable Fuel Standard, for the second time by a margin of 97-1, a move that sends the bill to Governor Vilsack for final approval. The bill is a compromise bill that includes a biodiesel tax credit, ethanol tax credits and a renewable fuel goal of 25 percent by the year 2020. The Iowa Soybean Association is very pleased with the House action and looks forward to support for the bill from Governor Vilsack.

HF 2754 contains many provisions that benefit biodiesel, some of which include:
• Establishes a three cent-per-gallon biodiesel tax credit until 2012
• Establishes a requirement that in order to qualify for the tax credit, a retailer must have 50 percent or more of total diesel sales be biodiesel blended fuel (B2 or higher)
• Makes ALL gallons of biodiesel-blended fuel eligible on a per gallon basis for the tax credit for retailers who qualify for the tax credit through total diesel sales
• Provides for retroactive application of the biodiesel tax credit
program to January 1, 2006
• Creates a system for the delivery of infrastructure support for biodiesel point-of-sale infrastructure, which includes a seat on the Infrastructure Board for ISA and 50 percent cost-share assistance up to $50,000 per project for biodiesel-related projects from retail sites to terminal racks
 
• Increases penalty for advertising or selling non-certified biodiesel blends
• Statutory recognition of the ASTM and EPA definitions for biodiesel
• Allows biodiesel gallonage to qualify without penalty for a retail dealer’s ability to satisfy the RFS
• Creates a reporting system to track biodiesel sales in Iowa
• Adds renewable fuel industry to official state list of “Targeted Industry Businesses”

This bill creates the very first Iowa tax credit for biodiesel. Legislators were very pleased with the biodiesel program and overall support of the industry in helping pass the legislation.

The infrastructure-funding bill is currently under consideration in the Senate. It is expected to deliver millions of dollars in support for biodiesel and E-85 infrastructure. The support will be in the form of cost-share grants. Both chambers are working out the funding issues and we expect a resolution to this issue very soon.
The Iowa Soybean Association develops policies and programs that help farmers expand profit opportunities while promoting environmentally sensitive production using the soybean checkoff and other resources. The Association is governed by an elected volunteer board of 21 farmers.
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Funded by soybean checkoff dollars.

ISA • 4554 N.W. 114th Street • Urbandale, IA 50322-5410 • Ph. 515-251-8640 • Fax 515-251-8657