The Iowa Biodiesel Board applauds the passage of a Biodiesel Fuel Quality Standard (SF 464) bill by the Iowa Senate on April 16. The bill, if passed by the Iowa House and signed into law by Gov. Culver, would require the use of a 5% biodiesel blend in every gallon of diesel fuel sold in the state of Iowa.
Continuing the bipartisan tradition of promoting renewable fuels, the bill was written by Sen. President Jack Kibbie, D-Emmetsburg, and sponsored by 30 other senators.
"Today's Senate passage of the Biodiesel Fuel Quality Standard demonstrates bipartisan agreement that biodiesel is vital to Iowa's rural economic development," says IBB Executive Director Randy Olson. "We look forward to strong bipartisan support for this bill in the House."
Bill is vital to survival of Iowa biodiesel industry
"This vote confirms that biodiesel is a strong economic engine for Iowa and ensures we are contributing to our state's energy security, instead of paying for foreign oil," Olson says. "We thank Sen. President Jack Kibbie and the bill's other champions, and we urge the members of the Iowa House to quickly approve this legislation. This bill is vital to Iowa's fulfilling its role as a national leader in biodiesel production."
Last week's vote by the Senate confirms that biodiesel is not only good for Iowa farmers and the environment, "but it also adds to national security by decreasing our dependence on foreign oil," Olson says. "I want to thank the Senators for their hard work crafting this legislation."
Iowa would be 8th state to adopt biodiesel mandate
Senate File 464 would make Iowa the eighth state to adopt a biodiesel fuel quality standard. Specifically, the bill calls for every gallon of diesel sold in Iowa to contain at least a 5% blend of biodiesel beginning Sept. 1, 2009. The bill also provides a $.03 per gallon refundable tax credit to retailers that sell diesel containing at least a 10% blend of biodiesel.
Senate File 464 now heads to the House of Representatives for final approval before going to Gov. Chet Culver to be signed into law.
Consider these facts about biodiesel:
• The biodiesel industry adds nearly $1.1 billion to Iowa's Gross Domestic Product.
• Biodiesel production directly employs about 350 employees and supports the creation of more than 5,400 permanent jobs in all sectors of the Iowa economy.
• The biodiesel industry puts $220 million into the pockets of Iowa consumers on an annual basis.
• The biodiesel industry generates $80 million of additional corporate and personal income and sales tax revenue for Iowa.