Loebsack talks biodiesel tax credits with REG

Although U.S. Congressman Dave Loebsack, D-Iowa, was visiting the Newton offices of Renewable Energy Group’s (REG) biodiesel production facility to speak with company leaders about their legislative priorities, the topic on everyone’s mind was the legislator’s most recent announcement: his retirement.

Upon completing his seventh term in office in less than 21 months, Loebsack said he will not seek re-election in 2020 to represent the people of Iowa’s Second District.

Loebsack was first elected to the U.S. House of Representatives in 2006 and had planned to serve no more than 12 years. But then, he said, “things changed” and he decided he “didn’t like the direction the country was going” under the leadership of President Donald Trump, prompting the 66-year-old congressman to run for reelection one last time.

Quick to point out that he is, in fact, retiring from his position rather than resigning, Loebsack told the Newton Daily News his legislative agenda of advocating for rural broadband and veteran's issues, among others, are still going to be priorities leading up to his departure.

“I’m not going to leave this job until January 2021, so I’m still on the Energy and Commerce Committee, I’m still on the Energy and Power Subcommittee — so I’m going to continue to work on these things as best I can,” Loebsack said. “I’m not going to let up one iota.”

A sentiment that extends to Loebsack’s support of renewable and biodiesel fuels. Chad Stone, the chief financial officer of REG and vice chairman of National Biodiesel Board Executive Committee, commended Loebsack for being “one of the most consistent champions for biodiesel in Congress,” even after the biodiesel tax credits expired in 2017.

After 17 months of no tax credit incentives, biodiesel producers like REG are pushing Congress hard to renew and extend the tax credits. Stone said the biodiesel tax credits “encourage growth and expansion,” leading to more jobs and capital expense projects.

“You have people investing for the future,” Stone said. “Development into supply chains, so we’re paying truckers to move materials around. So it’s good for the communities ... And this is the seventh of the last 10 years where this has happened. So it’s been very impactful on the industry and difficult to forward plan.”

Loebsack said biodiesel producers are feeling “the dysfunction of Congress,” but he is going to “keep doing everything (he) possibly can” to support and pass legislation to renew the biodiesel tax credits. The outgoing congressman admitted he was a little worried that action could be delayed since he announced his retirement.

“I don’t know what kind of compromise we can find there between the Senate and the House on some of these other things, but that’s what we have to work on,” Loebsack said. “There’s agreement on that.”

Scott Hedderich, executive director of corporate affairs of REG, claimed the problems with extending and renewing the biodiesel tax credit is tied to another underlying rural America issue. Even though the economy “seems to be going well,” the prices for corn and soybeans are not ideal.

“The other message to share with the leadership of the House is: rural America is important,” Hedderich said. “It’s easy for us out here to get lulled into thinking that the coasts only care about the coasts and urban areas aren’t going to care about rural areas … There’s a lot going on out here and what happens policy-wise is going to impact a whole lot over the next five to 10 years.”

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com