President misses opportunity to level playing field for biodiesel
The Iowa Renewable Fuels Association noted that on March 4 President Obama unveiled his FY 2015 Budget Proposal that included the reinstatements of several currently expired tax provisions, such as tax credits for cellulosic biofuel, wind energy production and R&D, but did not include the reinstatement of the biodiesel tax credit.
IRFA Policy Director Grant Menke made the following statement:
“While we are pleased the president seeks to reinstate the cellulosic biofuel tax credit and several other important tax incentives, we are disappointed he did not include the biodiesel tax credit among these extensions. As America’s leading advanced biofuel, biodiesel has made great strides in production, distribution and use. However, faced with the enduring effects of the petroleum industry’s continuous Century of Subsidies, reinstating the biodiesel tax incentive is a vital part of leveling the energy playing field and allowing true consumer fuel choice.”
Iowa is the leader in renewable fuels production with 42 ethanol refineries capable of producing over 3.8 billion gallons annually, three cellulosic ethanol facilities currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.