WASHINGTON, D.C. - Several Iowans, including leaders of the Iowa Biodiesel Board and Iowa Soybean Association, are in the nation's capital today drumming up support for the biodiesel tax incentive.
The National Biodiesel Board organized a Washington, D.C. Fly-in to lobby for reinstatement of the $1-per-gallon biodiesel blenders tax credit, which expired on Dec. 31, 2013. The U.S. House overwhelmingly passed a package of tax incentives retroactively for 2014 on Wednesday night that includes the credit and other deductions that would benefit farmers and Iowa's economy.
The measure now moves to the Senate. NBB officials say if the one-year package passes, any 2015 discussions will be punted to next year.
Biodiesel supporters say the fly-in couldn't have come at a better time to help ensure passage. State soybean leaders and biodiesel advocates met with their U.S. senators and representatives or key aids to explain why the biodiesel credit is needed, along with other provisions in the bill.
"We had good meetings. Everyone is supportive," said Grant Kimberley, IBB executive director. "While we were hoping for a multi-year extension, something is better than nothing. But there's still uncertainty going forward.
This is the fourth time in the last six years the credit has expired for America's Advanced Biofuel.
"Federal policy is important to compete in an established industry," he said. "Otherwise, it's hard to make investments and grow."
Kimberley, Karey Claghorn, ISA chief operating officer and T.J. Page of the Iowa Renewable Fuels Association led the Iowa delegation. Others include Bill Horan, Jeff Johannesmeyer and Denny Mauser of Western Iowa Energy and Tom Brooks of Western Dubuque Biodiesel.
Even though Iowa lawmakers support renewable fuels and agriculture, Kimberley said it's important to thank them for their support and arm them with information so they can talk to colleagues about why the credit is important. Recently elected lawmakers were sent letters on the topic, he said.
"With the uncertainty of the RFS (Renewable Fuels Standard) and low commodity prices, it's absolutely critical Congress moves forward with the extenders bill to help biodiesel continue to diversify the nation's energy supply and provide economic benefits," Kimberley said. "We do know that Iowa biodiesel plants aren't running at capacity and some have reduced staff. We're not maximizing our potential."
The Iowa Biodiesel Board is a nonpartisan state trade association representing the biodiesel industry.
