Here is a reprint of a press release received from the National Ethanol Vehicle Coalition:
Iowa Governor Signs E85 bill
Jefferson City , MO - Iowa Governor Tom Vilsack signed a bill into law that is touted as being the most aggressive renewable fuels legislation in the country. The legislation is intended to boost availability of ethanol and biodiesel throughout the state. A 25% Iowa Renewable Fuels Standard (RFS) is the centerpiece of the comprehensive renewable fuels bill.
“With the Governor’s signature, Iowa is on the path to be the number one renewable fuels consuming state,” stated Iowa Renewable Fuel Associaiton’s (IRFA) Executive Director Monte Shaw. “ Iowa is already the ethanol and biodiesel production leader. Now we have the most aggressive renewable fuels usage policy of any state as well. IRFA has already been contacted by several states who want to follow in Iowa’s footsteps.”
House Bill HF 2754 and its companion appropriation bill, HF 2759, intends to assist retailers with E85 infrastructure and could reduce the price of the alternative fuel at the pump. The bills also create:
• An aggressive, accountable renewable fuels standard (RFS) starting at 10% in 2009 and increasing to 25% by 2019.
• A new ethanol promotion tax credit for each gallon of ethanol blended into gasoline (replaces existing tax credit beginning in 2009). This incentive is linked to a retailer dealer’s achievement of the RFS schedule. The tax credit increases from 2.5 cents per gallon for retailers within 4% of the RFS schedule to 6.5 cents per gallonfor retailers meeting or exceeding the RFS schedule.
• A retail tax credit for E85 of 25 cents per gallon (phases out by 2020).
• $13 million over three years to expand an infrastructure program designed to help retailers and wholesalers offset the cost of bringing E85 and biodiesel blends to consumers.
Shaw indicated that consumers should see immediate relief of pricing at the E85 pump.
technorati Iowa, bioenergy, biodiesel, RFS, ethanol, E85, tax, credit