WI
Biodiesel Legislative Proposal Advances
Producer/Distribution
Incentives; Support for soybean crush
A
coalition of leaders in the state’s biodiesel industry
have advanced a legislative action plan that will help
place biodiesel production as a substantial contributor
to Wisconsin’s growing bioindustry. As a result,
biodiesel appears to be getting its share of attention
in the state budget deliberations currently underway in
Madison.
The Wisconsin Soybean Association (WSA), Wisconsin Bioindustry
Alliance (WBIA), Wisconsin Biodiesel Association (WBA),
and the Wisconsin Corn Growers Association (WCGA) have
joined in promoting a legislative budget initiative in
support of Wisconsin’s biodiesel industry. This
proposal includes the following:
- Wholesale
and retail tax credits for biodiesel These credits
will provide incentive for wholesalers and retailers
to include biodiesel at blends of B5 or above in their
distribution networks.
- Support
for Soybean Crush Requests state funding in
support of establishing a commercial soybean crush industry
within the state. The proposal seeks $4 million in grants
to assist with engineering and construction of a large
commercial crush (greater than 20 million bushel per
year) and another $1 million to assist with development
costs of smaller, more localized facilities.
- Biodiesel
Production Income Tax Credit Request
for a commercial producers tax credit of $0.10/gallon
for biodiesel produced in Wisconsin, to a maximum of
$1 million per year for each commercial producer.
These
initiatives were first promoted as part of the Governor’s
$28.1 million Renewable Energy Grant Program submitted
to the legislature’s Joint Finance Committee for
their consideration. The Governor’s overall package
failed to gain approval as Republicans balked at the funding
of such initiatives with an increase in tipping fees.
There was nevertheless an apparent consensus among committee
members that the legislature will include support for
biodiesel in the biennial budget.
“The legislators on both sides of the aisle appreciate
the growth of the biodiesel industry in Wisconsin and
the benefits it will provide to our bioindustry and our
rural economy,” says Jeff Pieterick, President of
the Wisconsin Biodiesel Association and Vice President
of North Prairie Productions, a 45 million gallon per
year biodiesel facility expected to be in production in
2008 in Evansville.
“This budget package will stimulate growth of the
renewable fuels market in Wisconsin by supporting the
distribution of biodiesel in the state. It will also help
Wisconsin’s biodiesel industry remain competitive
with other states by creating infrastructure and supports
that mirror what these other states provide to attract
and retain this industry to the benefit of their rural
economies.”
It is expected that budget deliberations will continue
in the state legislature throughout the summer, with final
approval to be accomplished late this year. Pieterick
remains confident that budget support for biodiesel will
be included by the legislature as a solid investment in
the state’s bioindustry.
“The cooperative effort between industry leaders
in advancing this proposal has been remarkable,”
Pieterick says, indicating that it has allowed the legislators
to focus upon a well-defined list of incentives that will
support the growth of this industry. “The response
has likewise been encouraging, as legislators from both
sides of the aisle step forward in support of this industry
with an understanding that it will help drive rural economic
growth while supporting Wisconsin’s effort to achieve
energy independence.”
More information on the coalition that has promoted this
biodiesel legislative initiative can be found at the following
weblinks:
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