Biofuels Access Bill clears Iowa House, moves to Senate

February 4, 2022 | Bethany Baratta

In a decisive 82-10 vote, the Iowa House of Representatives passed a bill proposed by Governor Kim Reynolds that would increase access and demand for homegrown biodiesel.

The Biofuel Access bill 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).

This key policy would keep Iowa first in biodiesel production while supporting Iowa’s farmers, says Grant Kimberley, ISA senior director of market development and executive director of the Iowa Biodiesel Board.

 “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,” he says.

Iowa produced nearly 340 million gallons of biodiesel in 2021. Biodiesel production supports Iowa’s economy while also adding value to soybeans grown in the state.

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 biodiesel and soybean leaders believe that if Iowa is going to ensure biodiesel remains a viable fuel option, it must stay competitive with other alternatives, particularly in states with low-carbon fuel policies.

ISA Director of Public Affairs Michael Dolch says ISA Advocate members played a key role in advancing the bill through the House.

“Once again, I’m grateful for the engagement of ISA Advocate members in the pursuit of actionable results and meaningful legislation,” Dolch says. “Their relentless outreach and communication with policymakers is strengthening ISA’s policy advocacy, which helped pave the way for swift House passage this week.”