Iowa advanced biofuel producers urge passage of extenders package

The Iowa Renewable Fuels Association reported Nov. 19 that nine of Iowa’s advanced biofuel producers sent a letter to the entire Iowa Congressional Delegation encouraging the swift passage of a tax extenders package, which includes provisions for biodiesel blending, cellulosic production, and accelerated depreciation, prior to final adjournment of the 113th Congress.

“Iowa’s entire congressional delegation has shown steadfast support for these important policies, and today we’re calling on them to take concrete steps to advance legislation extending these vital provisions that support energy security, American jobs, and a cleaner environment,” stated Western Iowa Energy Board Member Denny Mauser. “In the face of more than 100 years of preferential tax treatment for petroleum—a literal century of subsidies—these incentives keep advanced biofuel projects moving forward to the benefit of all Americans.” 

The letter states, “It is absolutely critical to our industry that this Congress pass a tax extenders package, which includes provisions for biodiesel blending, cellulosic production and accelerated depreciation, prior to final adjournment.”

Citing recent comments from the petroleum industry outlining how tax subsidies keep their wells pumping even when the oil market drops, the letter noted, “With U.S. energy and tax policy tilted so far in favor of petroleum, if Congress does nothing on the extenders package, there is a very real possibility that many of our industries will suffer.  The U.S. will be left with a de facto petroleum mandate.”

To read the entire letter, please click here. 

Ag Processing (AGP), DuPont Cellulosic Ethanol, Fiberight, NuMake LLC, Poet-DSM Advanced Biofuels LLC, Quad County Corn Processors, Renewable Energy Group Inc. (REG), Western Dubuque Biodiesel, and Western Iowa Energy signed the letter.

The letter was sent to Sens. Tom Harkin and Chuck Grassley, as well as Reps. Dave Loebsack, Tom Latham, Steve King, and Bruce Braley.

Iowa is the nation’s leader in renewable fuels production. Iowa has 43 ethanol refineries capable of producing more than 3.8 billion gallons annually, including 22 million gallons of annual cellulosic ethanol production capacity and one cellulosic ethanol facility 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.