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  • The Iowa Biodiesel Board

Biodiesel supporters thank Iowa lawmakers, ask for continued backing

Some of the most comprehensive biofuels legislation in the country is beginning to take effect in Iowa, a shift expected to improve consumer access to low-carbon biodiesel statewide while supporting the state economy.

That’s the message from biodiesel producers, soybean farmers and other supporters as they meet with Iowa lawmakers and Gov. Kim Reynolds today at the State Capitol.

The Governor’s 2022 Biofuels Access Bill (HF2128) passed by wide bipartisan margins last year.

The law is expected to increase consumer access to higher biofuel blends like 20 percent biodiesel (B20) and even 30 percent biodiesel (B30)—the first legislation in the nation to do so.

“The leadership of Gov. Reynolds and our legislature will help keep Iowa the No. 1 biodiesel-producing state, which benefits all levels of our economy,” said Grant Kimberley, Iowa Biodiesel Board executive director.

A recent study by ABF Economics found that based on 2022 figures, the biodiesel sector provides more than $1 billion to Iowa’s gross domestic product, over 7,000 jobs and more than $500 million in household income.

The group gathered in Des Moines for the annual Iowa Biodiesel Day on the Hill.

“Our industry—including soybean farmers—continues to face a great deal of market uncertainty, so the expansion of our state’s producer credit offers a new safeguard that is significant,” Kimberley said. “We are also excited to lead Iowa’s energy landscape toward more B20 and B30, a trend likely to pick up steam as national commitments mount to rapidly decarbonize.”

The key biodiesel provisions of the Governor’s 2022 Biofuel Access Bill include:

  • Extending a credit for fuel retailers for 11 percent biodiesel (B11) at 5 cents per gallon (cpg) until 2027 while introducing new credits of 7 cpg for B20 and 10 cpg for B30

  • Increasing a biodiesel production tax credit from 2 cents to 4 cents per gallon and extending the sunset through 2027

  • Updating a biodiesel-fuel tax differential to be based on the higher B20 blend beginning in 2026 and expiring in 2030

  • Increasing and updating the Renewable Fuel Infrastructure Program to promote higher blends at the retail level

Biodiesel is an advanced biofuel made from agricultural byproducts and coproducts, such as soybean oil.

The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.



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