Grainnet

Iowa Soybean Association Directors Support Incentives ... First Approach to Biodiesel Policy

Urbandale, IA--The Iowa Soybean Association Board of Directors has endorsed an incentives-first approach to 2008 biodiesel policy for the upcoming Iowa legislative session.

The ISA biodiesel policy options feature a variety of market-driven strategies for Iowa legislators to consider.

Highlights of this plan include:

• an increase in the current retail tax credit program,

• creation of a “bulk sales” incentive,

• new infrastructure support options through the Renewable Fuels Infrastructure Board,

• subsidies to existing biodiesel production facilities, and

• increased biodiesel usage by state fleets.

“We think this is a balanced, market-driven approach to biodiesel policy,” says Curt Sindergard, ISA president and a soybean farmer near Rolfe, Iowa.

The ISA has started the policy process early because the group recognizes the current challenges facing the industry due to high feedstock costs.

The ISA intends to feature the retail tax credit program, says Sindergard.

“We’re focused on a retail credit program that emphasizes biodiesel-blended fuel in the B5 to B10 range.

"In addition, our plan for the other options will promote higher blends, increased usage and additional access to biodiesel,” says Sindergard.

The ISA is a leading supporter of the industry, investing millions of dollars in biodiesel research and market promotion.

In 2006, the ISA was a leader in a broad-based effort to establish the state’s first biodiesel tax incentive.

In endorsing the incentives-focused approach, the ISA board was clear about its position on fuel mandates.

“We do not support a mandate at the state level. We prefer a national approach to a biodiesel mandate,” says Sindergard.

For more information, call Karen Simon or Matt Caswell at 800-383-1423.