Biodiesel Supporters Demonstrate Policy Success at State Capitol

(ANKENY, Iowa) – More than 75 biodiesel supporters took to the Iowa State Capitol today to remind lawmakers just how well their comprehensive state policies on biodiesel have worked. More than half of Iowa’s diesel supply contains biodiesel, increasing availability to Iowans, and the state remains the top producer of the renewable fuel, proponents said. 

The “Iowa Biodiesel Day on the Hill” took place today at the Capitol, which included legislator meetings and a luncheon hosted by the Iowa Biodiesel Board. The IBB’s 2019 legislative priorities include maintaining support for the following successful policies: 

• 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). 
• A Fully Funded Renewable Fuels Infrastructure Program ($3 million annually for biodiesel and ethanol, to help upgrade petroleum equipment to grow renewable fuel availability in Iowa). 

Iowa Department of Revenue data show that 51 percent of the state’s diesel fuel contained biodiesel in 2017, a dramatic increase from previous years, increasing availability and choice for all Iowans. Also, at 365 million gallons of estimated production in 2018, Iowa remains the nation’s leading biodiesel producer, representatives said.  

“Iowa’s comprehensive state policies are clearly working as intended,” said Grant Kimberley, Iowa Biodiesel Board executive director. “Smart policies that encourage both production and use help Iowa capture the economic and environmental benefits of federal policies like the Renewable Fuel Standard.”  

State policies also help Iowa’s producers weather uncertainty in those federal policies, Kimberley said. He pointed out the federal tax incentive for biodiesel has repeatedly lapsed, and Congress has not yet reinstated it.  

Biodiesel is an advanced biofuel made from agricultural byproducts and co-products, such as soybean oil. The Iowa Biodiesel Board is a state trade association representing the biodiesel industry. For more information on biodiesel, visit IowaBiodiesel.org. 

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Contact:  Jenna Higgins Rose
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