A bill that would mandate a 5 percent biodiesel blend into diesel used in the state of Iowa passed through a key committee in the Iowa Senate on March 26 and is now up for a full Senate vote this week.
Sen. John P. “Jack” Kibbie, (D-Dist. 4), the sponsor of the bill, told DTN that the legislative proposal passed the state Ways and Means Committee overwhelmingly, and now goes for scheduling for a vote on the state Senate floor on Thursday (4/3) at the earliest, where he expects to win enough support.
The bill has 31 co-sponsors in the state Senate, more than the 26 votes needed to pass it. But the bill could slow in the state House of Representatives which hasn’t taken up the measure yet.
Kibbie, who is also the Iowa Senate president, said once the full Senate passes the bill, it will go to the state House Ways and Means Committee and eventually to the full House to a vote.
The House will have to vote on the bill in its current form, without making any changes, he said.
The bill Kibbie is pushing, SF 408, is similar to the current Minnesota law. It calls for mandating a 5 percent biodiesel blend with all diesel fuel sold and used in the state of Iowa by July 1. The percentage goes up to 10 percent on July 1, 2012, and then up to 20 percent on July 1, 2015.
The bill gives authority to the Iowa Secretary of Agriculture to waive the mandate under certain situations, including when there are supply problems. But the bill will also do away with the current state tax-credit for petroleum marketers who sell biodiesel.
Kibbie said data available to his committee showed there were 2,000 diesel retail outlets throughout the state. About 100 of that total are voluntarily offering 2 percent biodiesel, or B2, and they are racking in $5 million through the state tax credit. The bill doesn’t provide for that benefit, and so if the bill becomes law that money will now go back to state Treasury to help with other expenditures.
He said the biodiesel mandate was needed not only for the environment, but also to support Iowa farmers, of whom he’s one. The mandate would provide a market for Iowa farm products as well as jobs, he said.
There are currently about 10 or 11 biodiesel plants in the state, employing about 500 people, and they are all struggling.
“This bill will help them,” he said.
Kibbie expects the state House to vote on the bill by the week of April 6-10, so that Gov. Chet Culver can sign it into law before July 1. However, if the House doesn’t consider the measure within the next two weeks, then the bill will have to wait until the second part of the current session, starting early 2010.
The Iowa General Assembly has two-year sessions. The current one ends next year, so an incomplete bill can proceed to the next stage next year without losing all the work already done. That means the House can take up the bill early next year without the requirement for another Senate vote.
If the bill is delayed until next year, then the timetable for blending requirements will also have to change accordingly, although Kibbie was optimistic the bill will pass both in the Senate and House this year.
According to data from the U.S. Department of Energy, 39.8 billion gallons of diesel were used in on-road highway last year, of which biodiesel accounted for only 700 million gallons, or 1.7 percent of the total. Volume for all diesel fuel, including for use on highway as well as in farms and other areas lifts the total t0 64 billion gallons.
