A bill designed to boost the use of renewable fuels in Iowa has cleared the state House and Senate and his headed for the desk of Gov. Tom Vilsack.
After months of negotiating and debate, the bill finally cleared the Senate on Tuesday, April 11. The Senate version – an amended version of an earlier House bill – then went to the House, where it was approved in just five minutes on Wednesday, April 12, according to the Sioux City Journal.
The bill would create a renewable fuel standard for the state, embodied in a series of goals aimed at increasing the use of biodiesel and ethanol. The ultimate goal is a requirement that, by 2020, 25 percent of the fuel sold in Iowa must come from renewable sources.
The Des Moines Register reported that, to help reach that goal, the bill would allow for spending $6 million over three years to help retailers install pumps and tanks to handle renewable fuels and would create various tax credits for retailers who sell the fuels.
The bill would get rid of the current tax break for 10 percent ethanol and replace it with three new tax credits: a 5-cent credit to the retailer for each gallon of pure ethanol sold; a 25-cent credit for each gallon of E85 blended ethanol; and a 3-cent credit for each gallon of biodiesel sold.
The Sioux City Journal reported that Gov. Vilsack said he will most likely sign the bill into law, though he did not specify when.