Legislation
Iowa Biofuels Access Bill
In 2022, Governor Kim Reynolds introduced a bill to increase access to biofuels like 20% biodiesel (B20) and 15% ethanol (E15). The legislature passed the bill with bipartisan support.
Current Laws
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: A credit for fuel retailers for 11% biodiesel (B11) at 5 cents per gallon until 2027. New credits of 7 cpg for B20 and 10 cpg for B30.
- Biodiesel Production Credit: A Biodiesel Production Tax Credit of 4 cents per gallon through 2027.
- Biodiesel Fuel Tax Differential: Based on the higher B20 blend beginning in 2026 and expiring in 2030.
- Renewable Fuel Infrastructure Program: Promotes higher blends at the retail level by helping them upgrade infrastructure.
Strong state policies encourage production to remain in Iowa, benefiting our economy and biofuels leadership position.
