NCGA Applauds Iowa Corn Growers for Work on State’s RFS Bill (4-13-06)

The National Corn Growers Association (NCGA) applauds the diligent work of the Iowa Corn Growers Association in promoting the benefits of a 25 percent Iowa Renewable Fuels Standard (RFS), which passed the Iowa House on Wednesday and the Iowa Senate last Thursday.

The Iowa House passed the bill by a vote of 97-1. The bill now awaits the signature of Gov. Tom Vilsack, who has expressed his support for the measure. With Vilsack’s signature, Iowa will become the fifth state to pass an RFS.

“We’re really happy it passed,” said Daryl Haack, NCGA Corn Board member and Iowa corn grower. “It’s one of the strongest ethanol requirements in the country, and that’s fitting because we produce the most corn and the most ethanol in the United States.”

Components of the bill include:

• Ethanol will be blended into at least 25 percent of Iowa’s fuel by 2019;
• Cost-sharing funds will help fuel retailers install new equipment to allow a 50 percent match;
• Retailers will be eligible for tax credits for the sale of blended biodiesel and E85 ethanol fuels.

In addition, the base tax credit for ethanol use will be tied to achievement: Retailers who meet the RFS will get a maximum tax credit of 6.5 cents per gallon of ethanol. Retailers who miss the standard by only a few percentage points will get a reduced tax credit. Only retailers who fall more than 4 percent below the standard will fail to earn the ethanol base credit.

Small stations selling less than 200,000 gallons per year will have until 2021 to meet the RFS.

“Iowa corn growers thank all the staff and volunteers who helped to get this bill passed,” Haack said.

Two weeks ago, Washington passed a 2 percent RFS for ethanol and biodiesel. Minnesota, Montana and Hawaii also have an RFS law.