Iowa Gov. Tom Vilsack (seated) signs the state’s renewable fuels standard and accompanying legislation into law in Des Moines on Tuesday in front of members of the Iowa Corn Growers Association, the state legislature and ethanol and corn industry representatives. The Iowa RFS schedule starts in 2009 with at least 10 percent of the state’s fuel being blended with ethanol. By 2019, 25 percent of Iowa’s fuel must be blended with ethanol.

NCGA Congratulates Iowa Corn Growers on RFS (5-31-06)

The National Corn Growers Association (NCGA) applauds the Iowa Corn Growers Association (ICGA) for its diligent work in securing the state’s Renewable Fuels Standard (RFS), which Gov. Tom Vilsack signed into law Tuesday. Vilsack also signed two infrastructure bills, House File 2754 and House File 2759, at a ceremony in the state capitol rotunda.

HF2754 includes a 6.5 cent base tax credit directly tied to the retailer’s ability to meet the RFS, a 25 cent E-85 tax credit, and a 3 cent tax credit for biodiesel. The RFS schedule starts with 10 percent in 2009 and ramps up to 25 percent by 2019. The annual base tax credit tied to the schedule motivates retailers to maximize renewable fuels sales. To assist retailers in upgrading to E85, an opportunity for cost-sharing grants of up to 50 percent is provided through HF2759.

“As a grassroots membership organization, ICGA members challenged us to pass a law to aggressively increase the use of renewable fuels,” said Keith Sexton, ICGA president. “This legislation would not have happened if those members had not directed our organization to push forward on this issue. This bill – the result of their challenge – offers great benefits for Iowa growers and consumers at the pump by providing an aggressive standard with tax incentives, infrastructure funds, and accountability.”

Iowa becomes the fifth state to pass RFS legislation. Minnesota, Hawaii, Montana and Washington are the others. Missouri and Louisiana governors are expected to sign RFS laws this year.