Iowa enhanced biofuel law on the books

Photo courtesy of Envato Elements

From staff reports

The state of Iowa, the nation’s top-producing biofuels state, now has a comprehensive biofuels bill on the books. The Governors Biofuel Access Bill (HF2128) will create an incentive-based program that should boost the sale of higher blends of biodiesel. Iowa’s Gov., Kim Reynolds signed it this week. 

The law provides for a two to four cents per gallon biodiesel production tax credit. It will also provide funds to update Iowa’s biofuels infrastructure to accommodate the higher biofuel blends. In addition, it extends current fuel retailer tax credits for B11 and higher blends while providing new credits for higher blends such as B20 and B30. They will also make e15 more available across the state of infrastructure cost-share opportunities for retailers. Iowa would be the first state to have the higher blends available at the pump.

Another interesting point is that Reynolds introduced this bill herself and made it a top priority for the legislative session. 

“I am proud that my biofuels legislation will lead to the single greatest expansion of biofuels in our state’s history while providing our industry with consistency in the face of ever-changing federal policy,” Reynolds said. Iowa’s biofuels industry organizations are pleased with the outcome as well. 

“We applaud House and Senate leaders, and Gov. Reynolds, for making this bill a priority,” said Grant Kimberley, Iowa Biodiesel Board executive director and Iowa Soybean Association sr. director of market development. “In the face of market uncertainty, the expansion of our state’s producer credit offers a new cushion for biodiesel producers that is quite significant. Worldwide uncertainty and fuel price instability also impact consumers. A diverse fuel supply with more low-carbon fuel made in America benefits everyone from soybean farmers to the end consumer.”

Kimberley noted that previous legislation successfully encouraged blends of B11, but that the state has reached a plateau. He said the state is “ … eager to move Iowa’s energy transformation onward and upward toward higher blends like B20 and B30.”

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