Additional Incentives to Promote Iowa’s Renewable Fuels

Already a world leader in biofuels, the House and Senate approved a bill to enhance Iowa’s biofuels industry. Current law sets a goal to replace 25% of petroleum in gasoline with ethanol and biodiesel by January 1, 2020. The bill will increase the use of renewable fuels and reduce our dependence on foreign oil by offering retail gas stations and producers’ tax incentives to sell and produce more renewable fuels.

The bill extends the current biodiesel tax credit to January 1, 2018. A new biodiesel production sales tax refund is also provided to producers of biodiesel, through calendar year 2014.

The bill increases the current ethanol promotion tax credit and the 85 percent ethanol (E85) promotion tax credit offered to retail stations. A new 15 percent ethanol blend (E15) tax credit is also established, to incent retail stations to sell more E15 blended gasoline.

Finally, a $3 million annual appropriation is provided for renewable fuels infrastructure to help retail stations offset the cost of installing the infrastructure needed to expand the use of E85 and blender pumps as well as biodiesel blends.

Iowa leads the nation in biofuels output accounting for 26% of U.S. ethanol and 12% of biodiesel production capacity. Ethanol and biodiesel producers are part of a manufacturing sector that makes a significant contribution to the Iowa economy. Supporters argue that Iowa should expand consumer access to renewable fuels, sustain green collar jobs at biodiesel refineries, reduce our dependence on out-of-state fuels, and boost the farm economy.

Senate File 531 now awaits the Governor’s signature.

Brownfields Tax Credits Approved by House

In an effort to clean up and redevelop unused property, the House has expanded the brownfield redevelopment tax credits.

The bill allows up to $5 million in tax credits annually awarded by the Department of Economic Development to be used to redevelop land with potential environmental and economic problems. Brownfields are sites that are contaminated by real or perceived environmental pollution. The tax credits can also be used for greyfields, which are economically outdated or underused lands.

The bill also improves oversight on projects awarded tax credits. There is a more detailed process for verifying the eligibility of a project under the program and an audit of the project must be completed before tax credits will be issued.

The bill now returns to the Senate for concurrence on the amount of the credits.

Gambling Bill Sent to the Governor

If a bill adopted by the House and Senate is signed into law, the current 17 casinos and racetracks will no longer be required to hold a county referendum election every eight years. The bill does allow a reverse referendum election if citizens can get 10 percent of the voters of the previous general election to sign a petition to hold the election.

Supporters argue that the referendum requirement has stymied growth and development of their gaming operations because they have not been able to obtain financing necessary for capital improvements. This removal will allow them to fund projects over an extended period of time.

Senate File 526 also requires the administrator of the state’s racing and gaming commission to prepare a report regarding intrastate internet poker, which is to be delivered to the Legislature and the Governor by December 1, 2011. The report must consider the current state of unregulated internet poker play in Iowa and the societal impacts of this internet poker.

Finally, the bill makes several changes to Iowa’s horse racing laws. Supporters argue this is the first time the three horse breeds and Prairie Meadows have agreed on legislation providing for a long-term solution to a variety of horse racing issues in Iowa. Prairie Meadows said the bill will put close to $1.9 million back into their pool of money that is then redistributed to charities and community betterment.

Senate File 526 has passed the House and Senate and now awaits the Governor’s signature, which he is expected to sign.

Iowa City Plant Will Make Wind Turbines

Nadicom (North American Ductile Iron Co.) announced they will open a manufacturing plant for wind turbines in Iowa City. The plant will employ 175 people and both the city and the state have pledged to work with them to begin operations by 2013. The plant will have the ability to cast massive components of wind turbines out of ductile iron, which is about 10% lighter than carbon steel.

Nadicom CEO Prasad Karunakaran cited multiple factors that led the company to Iowa City, including a central location, logistics to rail and other transportation modes, and access to a world-class workforce. Karunakaran specifically noted Iowa’s 260E job training program with Kirkwood Community College, stating that the college will assist in bringing the latest technologies and methodologies.

Register for the Education Summit Set for This Summer

U.S. Secretary of Education Arne Duncan will be a key note speaker at the education summit set for July 25 and 26. Secretary Duncan’s goals are to strengthen the U.S. economy by producing a workforce that is as competitive as possible. Prior to his appointment as secretary of education, Duncan served as the chief executive officer of the Chicago Public Schools.

The summit is limited to 1,650 spots. Those wishing to attend the summit are encouraged to register as soon as possible. Interested parties may register at: http://iowaeducation.iowa.gov/education-summit.

Other speaker’s committed to coming include Stanford University professor Dr. Linda Darling Hammond, and Chairman of the National Assessment Governing Board and former Massachusetts Education Commissioner Dr. David Driscoll. Dr. Driscoll helped create a nationally recognized accelerated teacher education and bonus programs while serving as Massachusetts education commissioner.

The summit will be held at the Iowa Events Center in Des Moines and will focus on three key areas: enhancing educator effectiveness, raising academic standards and measuring achievement, and leaving the industrial education model.

Besides the Governor’s Office, the conference has several sponsors including Iowa State Education Association, Iowa Association of School Boards, Area Education Agencies, School Administrators of Iowa, Iowa Association of Independent Colleges and Universities, the Chamber of Commerce, and several private businesses. The cost for an attendee is $65.

Mental Health Redesign

Iowa’s mental health system is fractured and in need of desperate redesign. Over the past three years, the Legislature has been looking at making services more equitable across Iowa and addressing the ever growing costs to provide needed services. This year, the desire to implement redesign of the system has reached a pinnacle.

Currently, there are up to 99 different mental health service systems for adults. Established by each county, these services include treatment, vocational, and other supports to help consumers remain in their home community, as well as congregate-based residential services. There is no minimum set of services. The proposal being worked on by the Legislature would address a set of core services that counties must provide. A goal of the legislation is to increase access to needed services in underserved areas of the state at an affordable cost.

In addition, the state’s funding of the mental health system is very complicated and does not provide sufficient funding for needed services. Under current law, the Department of Human Services allocates funding to counties for mental health services according to a formula established by the Legislature. The services are also funded through county property taxes.

In addition, each county may apply for additional funding if they meet certain requirements that show they have nearly spent all their funding for that year. Under the proposal being considered by the Legislature, the state will look at ways to streamline funding and create a more sustainable funding system for the state and counties.

The details of the proposal are still being worked out and reviewed by providers, advocates, and consumers of mental health services in Iowa. A final proposal is expected to pass the Legislature before ending this session.

House Passes Bill to Ward Off Storm Chasers

Stopping residential contractors that prey on people who have received damage from severe weather or fire is the goal behind Senate File 466, which passed the House this week.

Under the bill, it will be illegal for a residential contractor to do any of the following:

• Advertise or promise to rebate any insurance deductible, or any portion of the deductible, as an incentive for the sale of goods or services.
• Represent or negotiate on behalf of an owner of residential real estate on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, exterior replacement, or exterior reconstruction work.
• Offer or advertise to represent or negotiate on behalf an owner of residential real estate on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, exterior replacement, or exterior reconstruction work.

Residential contractors that are entering into a contract with an owner of real estate are required to give the owner a statement entitled “NOTICE OF BINDING CONTRACT.” This notice must clearly state that the owner is entering into a legally binding contract with the contractor, and that the owner is responsible for the payment of all goods and services, whether payment is received from the insurance company or not. If a contractor does not present this notice, or does any of the three items previously mentioned, the contract is void.

Property owners that enter into a contract have three days to cancel a policy with a residential contractor. It is recommended that property owners wait to sign a contract for work until they have heard back from the insurance company as to what amount of money they will be receiving from their insurance company.

Since the House made changes to the bill, it must now go back to the Senate for approval before being sent to the Governor.

New Fire Reporting System for Fire Departments

State Fire Marshal Ray Reynolds announced a new web-based reporting system that can be used by all of Iowa’s fire departments to report fires. Under state law, all departments are required to report all fire call responses, but many departments can’t afford the needed software to report the responses. The information collected from local departments is used to identify fire causes and risks, as well as develop fire prevention strategies.

The web-based program, called Fire Bridge, is expected to be available to fire departments within the next 60 days. All that fire departments will need to have to access Fire Bridge is an internet connection.

State Fire Marshal Reynolds reports that 38% of Iowa’s 900 fire departments are reporting their responses, and is encouraged that changing to a web-based system will significantly increase the reporting by departments. Other states that have switched to a web-based system have seen significant increases, to almost 100%, in a very short period of time.