Iowa Biofuels Standard
In February 2021, Governor Kim Reynolds introduced a bill to set a minimum standard of biofuels in the Iowa fuel supply. For biodiesel, this would mean most Iowa diesel would contain at least 11 percent (B11) during warmer months beginning in April of 2022, and B20 during warmer months in 2024 and later.
Iowa has enacted some of the most comprehensive state biodiesel policies in the nation to help make biodiesel more available and affordable for consumers.
Successful state biodiesel policies include the following:
- Biodiesel Retailer Credit: Retailers carrying 5 percent biodiesel (B5) can claim a 3.5 cents-per-gallon incentive. Retailers carrying B11 or higher can claim a 5.5 cents-per-gallon incentive.
- B11 Fuel Tax Differential: A 3-cent differential in Fuel Tax for blends of 11 percent or higher.
- Biodiesel Production Credit: An incentive of 2 cents-per-gallon to encourage in-state production.
- The Renewable Fuels Infrastructure Program: $3 million annually for biodiesel and ethanol, to help upgrade petroleum equipment to grow renewable fuel availability in Iowa.
Strong state policies encourage production to remain in Iowa, benefiting our economy and biofuels leadership position.
Video: 2020 Biodiesel Day on the Hill (REG)