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Biofuels Capitol Rally Shows Support for Iowa Bill

March 2, 2022

Biofuels Capitol Rally Shows Support for Iowa Bill

Iowa Biodiesel Board, Iowa Soybean Assoc. urge senators to pass incentive-based biofuels legislation 

(DES MOINES, IOWA) – A rally of about 200 soybean farmers, biodiesel producers and other biofuel supporters descended on the Iowa capitol today, urging the senate to vote for a bill to increase consumer access to higher biofuel blends including 20% biodiesel (B20) and E15 ethanol, as well as increasing infrastructure cost share for retailers. The bill is proposed by Governor Kim Reynolds.

Grant Kimberley, Iowa Biodiesel Board executive director and Iowa Soybean Association sr. director of market development, issued the following statement:

“Our legislators heard directly from farmers and other supporters today about just how important biofuels are to our state’s economy and their livelihoods. We need this legislation to lift up this vital industry and keep it thriving. Our country is at the beginning of an energy transformation, mostly driven by other states and also large corporations calling for low-carbon fuel. Iowa’s answer to that call is biodiesel. If we want our state to participate in and capture the economic benefits of this new shift, we need to prioritize smart policy.

“A few vocal opponents to this legislation are likely to find themselves on the wrong side of history. Iowa is the top biofuel-producing state and if we want it to stay that way, the time to act is now, as the states surrounding us have already done. We hope our senators heard that loud and clear and will move forward with this legislation.”

The House passed the bill with a strong bipartisan vote of 82 – 10. The key biodiesel provisions of the Governor’s 2022 Biofuel Access Bill are:

  1. 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.
  2. Increasing a Biodiesel Production Tax Credit from 2 to 4 cents per gallon and extending the sunset through 2027.
  3. Updating the Biodiesel Fuel Tax Differential to be based on B20 blends beginning in 2026, and expiring in 2030.
  4. Increasing and updating the Renewable Fuel Infrastructure Program.

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.
 

Tagged As: Legislation

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