Iowa Biofuels Access Bill
In 2022, Iowa Governor Kim Reynolds introduced a bill to improve access to higher blends of biofuels, like biodiesel. It passed the House of Representatives with strong bipartisan support.
The key biodiesel provisions of the Governor’s 2022 Biofuel Access Bill are:
- Extending a credit for fuel retailers (filling stations and convenience stores) for 11% biodiesel (B11) at 5 cents per gallon until 2027. Also introducing new credits of 7 cpg for B20 and 10 cpg for B30.
- Increasing a Biodiesel Production Tax Credit from 2 to 4 cents per gallon and extending the sunset through 2027.
- Updating the Biodiesel Fuel Tax Differential to be based on B20 blends beginning in 2026, and expiring in 2030. This would help close any price gap for consumers who want to use biodiesel.
- 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 October 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. 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."
- Grant Kimberley, Iowa Biodiesel Board executive director
LINKS:
Read the news release
Dept. of Energy: Biodiesel Performance FAQs from Handling & Use Guide
Economic Impacts of Biofuels (ABF Economics)
“We see a seismic shift in the nation’s energy supply already in motion, and the approach to encourage additional production and use of biofuels to reduce carbon while improving the economy is tried and true. As the nation’s top biodiesel producer, Iowa should stay in the forefront of these forward-thinking changes.”
- Grant Kimberley, Iowa Biodiesel Board executive director
VIDEOS: Farmer Dave Walton on how after 100 years of petroleum, our fuel supply is evolving, and why he supports biofuels legislation