The Iowa legislature last month passed a bill that encourages availability of biodiesel at the pump, provides an incentive for local production and invests in the infrastructure needed for wide distribution.
Senate File 531 signed into effect on May 26 by Gov. Terry Branstad requires that biodiesel blends of at least B6 but not higher than B20 must conform to A.S.T.M. international specification D7467. It will also extend the state’s biodiesel retailer credit at 2 cents per gallon for B2 next year and 4.5 cents per gallon for B5 from 2012 through 2017. The National Biodiesel Board said this will make it easier for petroleum marketers to achieve the credit.
The legislation adds a biodiesel producer incentive of 3 cents per gallon in 2012, 2.5 cents per gallon in 2013 and 2 cents per gallon in 2014 (for the first 25 million gallons per facility). As part of the new law, the state will provide $3 million per year to the Renewable Fuels Infrastructure Board, which will also afford the Iowa Biodiesel Board representation on the Renewable Fuels Infrastructure board.
Through the end of this year, retailers whose diesel sales consist of at least 50 percent biodiesel blends containing a minimum 2 percent biodiesel are eligible for a $0.03 per gallon tax credit on each gallon of biodiesel sold.
