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Iowa Biodiesel Board Hails $7M Infrastructure Boost, State Tax Incentive

June 30, 2020

(ANKENY, Iowa) – Iowa Governor Kim Reynolds today announced a planned $7 million boost to the Iowa Renewable Fuels Infrastructure Program, a move applauded by the Iowa Biodiesel Board. 

The IRFIP provides cost-share grants to help fuel distributors and retailers modernize equipment to include biofuels like biodiesel. Usually funded by the state at $3 million annually, the $7 million boost will come from the federal CARES Act, Reynolds said, for an expected total of $10 million for the year. 

“This increased funding represents a potential quantum leap in Iowa’s distribution of renewable fuels, not just for our state, but for the entire region,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “We commend the governor for seeking innovative funding sources to expand the Renewable Fuels Infrastructure Program, which is likely to help cement Iowa’s leadership role in a national renewable fuel movement.” 

Kimberley called the IRFIP a true legislative success story that has already increased retail availability of biodiesel in Iowa almost three-fold since 2015. 

The governor made the announcement as she signed legislation that included extending a fuel tax incentive for diesel sold in the state containing more than 10 percent biodiesel. The IBB also commended that bill signing, which extends the 3-cent-per-gallon fuel tax differential until 2026. 

Since the fuel tax differential took effect, more than half of the state’s on-road diesel fuel now contains at least 11 percent biodiesel (B11). 

“Extending this fuel tax differential for B11 and higher was the top biodiesel priority for our state’s biodiesel producers and soybean farmers alike, and we thank Governor Reynolds for her unwavering commitment to biodiesel growth in our state,” he said. “All of the pro-biodiesel policies in our state improve availability for consumers while contributing to the state’s economy, including the struggling farm economy.” 

A study by ABF Economics shows biodiesel supports about 3,875 full time equivalent jobs and contributes $489 million to the state’s Gross Domestic Product annually. 

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 

Tagged As: Biodiesel Renewable Energy

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