Gov. Reynolds addresses farmers, biodiesel producers and other supporters outside of the Iowa Capitol. (Photo: Joseph Hopper/Iowa Soybean Association)
Iowa biofuel legislation rallies support at Capitol
March 3, 2022 | Brock Johnston
Over 200 soybean farmers, biodiesel producers and other supporters gathered at the Iowa Capitol on Wednesday, urging their local state senators to pass critical biofuel legislation.
The advocacy event was supported by the Iowa Soybean Association (ISA) and Iowa Biodiesel Board, in partnership with Iowa Corn Growers and the Iowa Renewable Fuels Association.
The Governor’s Biofuel Access Bill would improve access to and incentivize the production of homegrown biodiesel in the state. In February, soy growers celebrated the House passage of the bill, after receiving strong bipartisan support (82-10). The bills are currently numbered House File 2128 and SBB 3084.
“Our legislators heard directly from farmers and other supporters about just how important biofuels are to our state’s economy and their livelihood,” said Grant Kimberley, ISA sr. director of market development and Iowa Biodiesel Board executive director. “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.”
The legislation seeks to address biofuel tax and infrastructure provisions by:
- Updating and expanding both the Biodiesel Production Tax Credit and Biodiesel Fuel Tax Differential.
- Shifting current fuel retailer tax credit for blends of 11% biodiesel (B11) to encourage higher blends.
- Introducing new credits for blends like B20 and B30.
- Expanding the state’s Renewable Fuels Infrastructure Program (RFIP).
By increasing soybean oil value, biodiesel supports 13% of the price per bushel of soybeans. This equated to $1.78 per bushel in 2021. It also lowers the price of soybean meal, a key ingredient for livestock producers and the food supply.
“Iowa is the top biofuel-producing state and if we want it to stay that way, the time to act is now,” added Kimberley. “We hope our senators heard that loud and clear and will move forward with this legislation.”
With support for the legislation continuing to build, Iowa soybean farmers are encouraged to contact their local state senators and express their unique support.
Iowa Biodiesel Board contributed to this article.