Iowa biodiesel supporters advance on State Capitol for governor’s bill

Soybean farmers, biodiesel producers and other supporters met with Iowa state senators Feb. 15, urging them to vote for a bill to increase consumer access to higher biofuel blends like 20 percent biodiesel (B20).

Proposed by Gov. Kim Reynolds, the bills are currently numbered House File 2128 and SSB 3084. The House already passed the bill with a strong bipartisan vote of 82 to 10.

“With such strong momentum and more stakeholders stepping up to support the legislation, we are hopeful the bill will make it to the governor quickly,” said Grant Kimberley, Iowa Biodiesel Board executive director. “Still, a few vocal opponents are drawing the attention of senators. We need biofuel supporters to engage with their senators and show there is more support for this bill than opposition.”

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

1. Extending a credit for fuel retailers (filling stations and convenience stores) for 11 percent biodiesel (B11) at 5 cents per gallon (cpg) until 2027. Also introducing new credits of 7 cpg for B20 and 10 cpg for B30.

2. Increasing a biodiesel production tax credit from 2 to 4 cpg and extending the sunset through 2027.

3. Updating the biodiesel fuel tax differential to be based on B20 blends beginning in 2026, and expiring in 2030.

4. Increasing and updating the Renewable Fuel Infrastructure Program to promote higher blends by requiring retailers to sell B11 and higher blends from April 1 through Oct. 31 if they access infrastructure funds after the effective date.

“The nation is undergoing an energy transformation, mostly driven by other states as well as corporations, and Iowa’s answer to the low-carbon call is biodiesel,” Kimberley said. “If we want Iowa to participate and capture the economic benefits, we need to prioritize smart policy like this. The time to act is now.” Neighboring states like Minnesota, Illinois and Missouri have passed or are working on strong biodiesel legislation, Kimberley noted.

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.