Iowa Gov. Vilsack signs ethanol, wind energy bills

Gov. Tom Vilsack signed a package of bills today designed to expand the use of renewable fuel and wind energy in Iowa. One of the chief goals is boosting motorists’ use of E85 fuel, which is made primarily with ethanol.

One of the bills Vilsack signed at a Statehouse ceremony requires that 25 percent of all fuel sold by 2020 be renewable. Currently, renewable fuel accounts for about 10 percent of sales in Iowa.

House File 2574 also gives retailers tax incentives and grants to install equipment needed to sell more highly concentrated ethanol to help meet the goal. “This is an important investment in Iowa’s future,” Vilsack said.

Officials with the Iowa Renewable Fuels Assocation predict that Iowans will soon see lower E85 and biodiesel pump prices. The tax credits “are retroactive to the beginning of 2006. We certainly hope retailers will begin to immediately pass them through to consumers” said Monte Shaw, the association’s executive
president.