Iowa Politics Insider: State’s biofuels industry seeks federal help

Source: Des Moines Register • Posted: Monday, November 24, 2014

State’s biofuels industry seeks federal help

Nine of Iowa’s advanced biofuel producers sent a letter last week to the state’s six-member congressional delegation to urge quick passage of a tax extenders package that includes provisions for biodiesel blending, cellulosic production, and accelerated depreciation.

“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,” said 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 added, “It is absolutely critical to our industry that this Congress pass a tax extenders package. … 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 said, “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.”

The letter was signed representatives of Ag Processing; DuPont Cellulosic Ethanol; Fiberight; NuMake, LLC; POET – DSM Advanced Biofuels, LLC; Quad County Corn Processors; Renewable Energy Group, Inc.; Western Dubuque Biodiesel; and Western Iowa Energy.