According to the Iowa Renew-able Fuels Association (IRFA), Iowa, home to one of the largest number of biodiesel plants, is expected to have fewer than three of its 15 facilities still operating should the $1/gal. biodiesel tax credit lapse without extension, as expected, at the end of 2009. This was reported by OPIS.

The plants collectively have the capacity to produce 322.5 million gallons/year of biodiesel. Sources expect the smaller plants to be the most vulnerable to the lapsing tax credit, OPIS reports. Among Iowa's biodiesel plant locations are facilities in Iowa Falls, Algona and Ralston. The National Biodiesel Board previously warned that if the tax credit wasn't renewed, the consequences would be “substantial” and could result in a complete halting of production output. “Without the biodiesel tax credit, most (U.S.) biodiesel refineries will be forced to shut down production and lay off employees,” IRFA Executive Director Monte Shaw says.