A biofuels bill that Gov. Terry Branstad is scheduled to sign this afternoon will provide a significant boost for ethanol and biodiesel sales in the state, said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

The legislation, Senate File 531, creates a 3 cents per gallon retailer tax credit for 15 percent ethanol blended gasoline, or E15. The U.S. Environmental Protection Agency is expected to allow sales of E15 beginning July 1. Shaw said some Iowa retailers already have plans to begin selling E15 on that date.

The legislation also extends the biodiesel retailer tax credit for blends of 5 percent or higher, and provides $3 million in annual funding for the Iowa Renewable Fuel Infrastructure Program, which provides incentives for retailers to install more higher ethanol-blend pumps. Vehicles that were built in 2001 or later can use E15, Shaw said.