Biofuels industry bill approved by Iowa Senate 48-0

A bill aiding Iowa's biofuels industry was approved 48-0 Tuesday by the Iowa Senate.

Senate File 2344, which was sent to the House, will increase the tax credit for E15 blended gasoline during the summer months, extend the biodiesel production tax credit for five years to retain and attract biodiesel production to Iowa, and add biobutanol – an advanced biofuel – to the state's renewable fuels industry, said Sen. Robert Hogg, D-Cedar Rapids, the bill's floor manager.

In addition, an amendment to the bill extends tax credits to retailers that sell biodiesel, E15 and E85 motor fuels for an additional two years, from 2017 to 2019.

Supporters of Iowa's biofuels industry praised the legislation.

"This vote sends a clear message that Iowans are serious about increasing renewable fuels production and use, expanding consumer fuel choice and growing Iowa's economy," said Grant Menke, policy director of the Iowa Renewable Fuels Association.

Daniel J. Oh, chief executive officer of the Ames-based Renewable Energy Group: the largest biodiesel producer in the nation, said, "Biodiesel is a proven contributor to strengthening America's energy and economic security and protecting our environment. We are very pleased and grateful to see continuing bipartisan Senate support for a growing biodiesel industry and the thousands of jobs it supports."