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IOWA Act would expand renewable fuels, lower gas prices

Agriculture.com Staff 04/28/2006 @ 7:31am

Congressman Jim Nussle of Iowa yesterday introduced legislation in the U.S. House of Representatives to lower gas prices and expand the production of renewable fuels. The Independence from Oil With Agriculture (IOWA) Act calls for nationally expanded production of renewable fuels such as ethanol and biodiesel by nearly 60% within six years.

The IOWA Act would increase the Renewable Fuels Standard from 7.5 billion gallons to 12 billion gallons by 2012, and provide a permanent tax credit for the installation of E85 tanks. It would also permanently extend the small producer ethanol tax credit, biodiesel production tax credit, and renewable energy income tax credit for utility providers using electricity generated from renewable sources.

"This legislation is a common-sense solution for consumers and the environment," Nussle said. "By boosting the production of ethanol, biodiesel, wind and biomass, we'll increase the supply of cleaner burning, more environmentally friendly renewable fuels and lower the costs on working families and motorists at the gas pump. This is nothing to say about the economic boom it will be on Iowa's farms and Main Streets where these rich resources are grown, harvested and sold."

Congressmen Tom Latham, Jim Leach, Steve King, and Leonard Boswell -- all from Iowa -- and Lee Terry and Tom Osborne of Nebraska, Kenny Hulshof from Missouri, and Jerry Weller from Illinois co-sponsored the bill.

Several leaders of the Iowa Renewable Fuels Association were in Washington for the introduction of the bill. "Americans want cleaner air, less dependence on foreign oil, and more inexpensive fuel options," said Keith Sexton, president of the Iowa Corn Growers Association. "Every gallon of ethanol used helps achieve these goals."

Congressman Jim Nussle of Iowa yesterday introduced legislation in the U.S. House of Representatives to lower gas prices and expand the production of renewable fuels. The Independence from Oil With Agriculture (IOWA) Act calls for nationally expanded production of renewable fuels such as ethanol and biodiesel by nearly 60% within six years.

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