Record number of Iowa fuel stations receive quarterly biofuel-infrastructure grants

Iowa’s secretary of agriculture, Mike Naig, announced April 10 that the Iowa Renewable Fuels Infrastructure Program board recently approved 114 project applications from Iowa gas stations, totaling more than $2.88 million, for new and expanded ethanol and biodiesel infrastructure projects.

This sets a new quarterly record for the number of investments in biofuels projects.

These investments help drivers save more money by providing expanded access to lower-cost and cleaner-burning homegrown biofuels.

The grants were awarded by the RFIP board during its quarterly meeting at the end of March.

New ethanol-fueling infrastructure will be funded with the help of 112 RFIP cost-share grants for E15 projects totaling more than $2.7 million at gas stations in 44 Iowa counties.

The board also approved two biodiesel cost-share grants—one for retail and one for terminal storage—totaling $150,000. 

A complete list of state RFIP-funded ethanol and biodiesel projects, sorted by county, can be found here. 

“Every time a new pump is added or upgraded to offer E15 and higher biofuel blends, Iowa drivers get another opportunity to save money at the gas pump,” Naig said. “It’s exciting to see the growing momentum in our state’s biofuels industry, with our plants achieving record production, our drivers setting records for use, and more stations than ever using state cost-share funds to provide consumers with more fueling options. We’re committed to sustaining this momentum for ethanol and biodiesel in Iowa. Biofuels are proven to save drivers money at the pump, bolster rural employment, expand markets for farmers and help unleash American energy dominance.”

These state-funded grants are in addition to the federal Higher Blends Infrastructure Incentive Program grants recently announced.

HBIIP funding will incentivize 543 projects, totaling $537 million in 29 states, including Iowa.

The grant announcements come at a time when biofuels usage continues to build momentum in Iowa, with E15 sales hitting another record in 2024.

The Iowa Department of Revenue announced April 3 that sales of E15 grew by 44 percent over 2023 sales, which had also been the previous yearly record.

With 256.7 million gallons of E15 sold in Iowa in 2024 at an average discount of 15 cents per gallon compared to E10, Iowa drivers saved over $38.5 million last year by choosing E15 at the pump.

Last year also represented a record year for the sale of B20 and higher blends of biodiesel, demonstrating that homegrown renewable energy continues to be popular when made available to consumers. 

These investments are helping more gas stations come into compliance with the E15 Access Standard, which goes into full effect on Jan. 1, 2026.

Iowa is the first state to enact an E15 Access Standard, which requires most fuel retailers and gas stations to offer E15 by Jan. 1, 2026.

The law was passed by the Iowa Legislature and signed by Gov. Kim Reynolds in 2022.

For those convenience stores and gas stations that need assistance coming into compliance, the Iowa Department of Agriculture and Land Stewardship can provide cost-share funding through the Renewable Fuels Infrastructure Program.

Since the grant program began in 2006, the department has invested approximately $56.6 million toward expanding renewable fuels infrastructure within Iowa.

This has been matched with more than $260 million by Iowa gas stations and fuel retailers. 

With cost-share funding available, the department welcomes grant applications to assist more fuel stations in improving and upgrading infrastructure.

Applications are available at iowaagriculture.gov/IRFIP, and will be considered by the RFIP board at an upcoming quarterly meeting.