Sen. Grassley, 13 Others Introduce Biodiesel Tax Credit Extension Bill
July 13, 2016
Press Contact: T.J. Page
Extension and Modification Crucial to Protecting American Jobs, Energy Security
JOHNSTON, IOWA – Senator Chuck Grassley and 13 other co-sponsors, including Sen. Joni Ernst, today introduced a bill that would modify the $1.00 per gallon biodiesel blenders’ tax credit to a producers’ credit and extend it for three years. Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw released the following statement regarding the legislation:
“We applaud Sen. Grassley for leading the charge, and his colleagues, like Sen. Joni Ernst, for working on this common sense modification and extension that will support American jobs and energy security. Just yesterday, the Energy Information Administration released its latest estimates showing that U.S. biodiesel production could actually take a step backwards this year. This is due to the latest Department of Commerce numbers showing biodiesel imports are surging, reaching a two-and-a-half-year high in May and currently making up about one-third of the U.S. biodiesel market. These soaring imports, coupled with the EPA’s lackluster Renewable Fuel Standard proposal, demonstrate the need to modify the credit to a domestic producers’ incentive and provide some longer-term certainty for the U.S. biodiesel industry.”
After being reinstated in late 2015, the federal biodiesel tax incentive is set to expire again on December 31, 2016.
Earlier this week, the Iowa Renewable Fuels Association (IRFA) submitted comments on the proposed Renewable Fuel Standard (RFS) volumes, urging the Environmental Protection Agency (EPA) to enforce the law as Congress intended and set the final targets at 15 billion gallons for corn-based ethanol in 2017 and at least 2.5 billion gallons for biomass-based diesel in 2018.
To read IRFA’s full comments, please click here.
According to a recent IRFA study, Iowa’s renewable fuels industry accounts for more than $4.6 billion of Iowa GDP, generates $2.3 billion in income for Iowa households and supports more than 43,000 jobs throughout all sectors of the Iowa economy.
Iowa is the nation’s leader in renewable fuels production. Iowa has 12 biodiesel facilities with the capacity to produce more than 315 million gallons annually. In addition, Iowa has 43 ethanol refineries capable of producing 4 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. 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