The Iowa Soybean Association and Iowa Biodiesel Board issued a statement on Jan. 31 urging the state legislature to pass a bill introduced by Iowa Gov. Kim Reynolds on Jan. 26 that aims to increase consumer access to higher biodiesel and ethanol blends.

The bill HF 2128, also known as the Governor’s Biofuel Access Bill, includes several provisions that would support higher production and use of biodiesel in Iowa. The bill updates and expands both the state’s biodiesel production tax credit and the biodiesel fuel tax differential. The bill would also shift a current fuel retailer tax credit for blends of B11 to encourage higher blends of biodiesel, introducing new credits for blends like B20 and B30, according to the ISA and IBB. In addition, the legislation expands the state’s Renewable Fuels Infrastructure Program, doubling funding for the program to $10 million per year for the next five years.

Reynolds’ bill also codifies an executive order issued in 2019 requiring that all diesel engine vehicles in the state fleet to be compatible with higher blends of biodiesel. In addition, the bill requires any newly installed or upgraded fuel infrastructure must be E85 or B20 compatible. For ethanol, all retailers with compatible infrastructure would be required offer E15 by 2026.

“It’s time to act,” said ISA President Robb Ewoldt, a soybean farmer near Davenport who uses biodiesel to grow crops and transport freight. “We’ve gone to great lengths over the past year to help the state revise its approach to expanding biofuels access and use. We’ve listened and modified the legislation. It’s time to come together and get this done.”

"These incentives will assist in increasing the production and usage of cleaner burning fuels like biodiesel,” Ewoldt continued.

“This policy would help Iowa remain the number one biodiesel-producing state, which in turn helps create demand for Iowa’s soybean oil,” says Grant Kimberley, ISA senior director of market development and executive director of the IBB. “To continue increasing the demand for homegrown soy and keep Iowa’s 40,000 soybean farmers in a position to succeed, expanding access to biofuels is essential. We commend Governor Reynolds for her leadership on this legislation.”

“Iowa’s answer to the nationwide demand for low-carbon fuels is biodiesel,” Kimberley added. “We ask the House Ways and Means Committee to recognize that as our nation’s approach to energy evolves, our state can be front and center, and reap the benefits. This is an investment in Iowa’s economy that will help our state thrive for years to come.”

According to the IBB, Iowa’s 11 biodiesel production facilities produced nearly 340 million gallons of biodiesel last year.