May 26, 2016
BY Ron Kotrba
In Iowa, at Renewable Energy Group Inc.’s Newton biodiesel plant, Gov. Terry Branstad signed legislation into law May 24 extending and expanding state biodiesel incentives.
The bill, SF 2309, extends a state biodiesel production tax credit through 2024. The production credit, which amounts to 2 cents per gallon on the first 25 million gallons of production per biodiesel plant, was scheduled to sunset Dec. 31, 2017.
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The measure also extends and expands a retailer’s credit that provides petroleum retailers an incentive of 4.5 cents per gallon on blends of at least 5 percent biodiesel through next year. Then, from 2018-’24, the incentive drops to 3.5 cents per gallon, but an additional incentive of 5.5 cents per gallon will be in place for biodiesel blends of 11 percent or higher.
“We are extremely grateful that Governor Branstad and the Iowa legislature appreciate the impact of biodiesel in Iowa and beyond,” said Grant Kimberley, the executive director of the Iowa Biodiesel Board. “Renewable fuels like biodiesel point the way to a more sustainable energy future—and a more independent, home-grown energy future as well. With these additional incentives, Iowa is perfectly positioned to experience even more economic growth in environmentally friendly biofuels.”
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Gov. Branstad had previously signed legislation to secure another year of funding for Iowa’s biodiesel and ethanol blender pump program, the Renewable Fuels Infrastructure Program.
Last year Iowa’s biodiesel plants produced a record 242 million gallons of biodiesel. The industry supported more than 3,000 jobs and contributed almost $345 million in GDP for the year, according to the IBB.
The U.S EPA on July 17 released data showing more than 1.9 billion RINs were generated under the RFS during June, down 11% when compared to the same month of last year. Total RIN generation for the first half of 2025 reached 11.17 billion.
The U.S. EPA on July 17 published updated small refinery exemption (SRE) data, reporting that six new SRE petitions have been filed under the RFS during the past month. A total of 195 SRE petitions are now pending.
The USDA has announced it will delay opening the first quarterly grant application window for FY 2026 REAP funding. The agency cited both an application backlog and the need to disincentivize solar projects as reasons for the delay.
CoBank’s latest quarterly research report, released July 10, highlights current uncertainty around the implementation of three biofuel policies, RFS RVOs, small refinery exemptions (SREs) and the 45Z clean fuels production tax credit.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.