New Study Finds Biofuels Have Crucial Impact on Iowa’s Economy
March 20, 2019
Contact: Monte Shaw
JOHNSTON, IOWA – Today Iowa Renewable Fuels Association (IRFA) members climb Iowa’s capitol hill to meet with state legislators, armed with a newly-released study that declares biofuels are responsible for over 48,000 Iowa jobs and more than $2.5 billion in Iowa household income.
The study, authored by John Urbanchuk of ABF Economics and commissioned by IRFA, also found that biofuels account for over $5 billion of Iowa’s GDP, or roughly three percent.
“The results of this study serve as a great reminder to our state and federal representatives that biofuels continue to be a smart and profitable investment for Iowa,” said IRFA Executive Director Monte Shaw. “As this industry grows, so do the economic opportunities for our state. However, actions being taken on the federal level, such as the continued use of small-refinery exemptions (SREs) by the EPA that undermine the Renewable Fuel Standard (RFS), can jeopardize the future of Iowa biofuel producers and the many economic benefits they provide for Iowa.”
While the study found the “importance of the biofuels industry to agriculture and rural economies is particularly notable,” the report also found that “policy stability is essential to maximize these benefits. Uncertainty surrounding issues like SREs, tax credit extensions, trade with China, year-around E15 sales, and the RFS reset will impede the ability of the industry to provide these societal benefits.”
“Iowa farmers and biofuel producers are suffering from low prices, and we desperately need a strong RFS and extended biodiesel tax credit,” Shaw said. “The message to our representatives here in Iowa and in Washington is if they turn their backs on the policies that have helped grow biofuels, billions of dollars in economic activity and tens of thousands of jobs will be jeopardized.”
To view the full study, click here.
The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing over 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce nearly 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.