Gov. Branstad signs extension of biodiesel production incentive
May 29, 2014
Iowa Governor Terry Branstad showed support for the state’s biodiesel industry in May, signing into law an extension of the state’s biodiesel producer incentive. The incentive is structured as a 2 cent per-gallon refundable credit for the first 25 million gallons produced at any single plant in the state. The incentive was set to expire at the end of this year but the extension now moves that through 2017.
Grant Kimberley, executive director of the Iowa Biodiesel Board, said all Iowans stand to gain.
“This legislation benefits energy security as well as rural economic development and Iowa’s economy at large,” Kimberley said. “Raising the crush demand for soybeans also increases production of soybean meal, so any rise in biodiesel use will reduce soybean meal prices to the benefit of Iowa’s livestock producers. Economic research shows soybean, corn, livestock and hog farmers all stand to gain from biodiesel production.”
With the fate of the federal biodiesel tax incentive and the Renewable Fuel Standard volumes currently uncertain, strong state biodiesel policies help stabilize the industry and provide a baseline for producers. Governor Branstad mentioned this specifically at the signing ceremony, which took place at the Poet biorefinery in Coon Rapids, Iowa. He said he plans on sending a copy of the signed bill to President Obama and the EPA in a show of support for biofuels and the RFS.
The Iowa Biodiesel Board and its stakeholders were instrumental in passing the legislation.
Jenna Higgins Rose – Iowa Biodiesel Board