Photo: Joe Hopper

Farmers, biodiesel producers and other stakeholders visited Des Moines in March 2022 to advocate for the expanded use of biofuels. (Photo: Joe Hopper/Iowa Soybean Association)

Iowa Soybean Association, Iowa Biodiesel Board Applaud Legislature's Passage of Landmark Biofuel Bill

April 26, 2022

Ankeny, Iowa – The Iowa Soybean Association (ISA) and Iowa Biodiesel Board (IBB) heralded the Iowa Legislature’s passage of some of the most comprehensive biofuels legislation in the U.S. Tuesday. Once signed by Governor Kim Reynolds, the legislation (HF2128/SSB3084) will encourage the sale of higher blends of biodiesel through an incentive-based approach. It will also make E15 ethanol more available statewide, with enhanced infrastructure cost-share opportunities for retailers. The Senate passed the bill today with amendments, and the House also quickly passed the version, both by a wide margin.

ISA President Robb Ewoldt, soybean farmer from Davenport, said:

“Once signed, this legislation will bring Iowa to the forefront of homegrown energy. As land stewards and community leaders across our 99 counties, the state’s 40,000 soybean growers understand the important role of biofuels in supporting growers, growing communities and investing in cleaner-burning fuels to meet carbon reduction goals.

“By increasing soybean oil value, biodiesel supports 13% of the price per bushel of soybeans. This equated to $1.78 per bushel in 2021, while lowering the price of meal for livestock producers and the food supply. "We're grateful for Governor Reynolds' leadership and look forward to her signing this important legislation that will continue to drive opportunities for Iowa farmers and put our state in a position to lead on sustainable energy.”

Grant Kimberley, ISA sr. director of market development and IBB executive director said:

“We applaud lawmakers on the passage of this landmark Iowa legislation, which we anticipate will increase consumer access to higher blends of biodiesel. Consumers, the economy and the environment all stand to gain. This is the most comprehensive state legislation anywhere in the nation, offering something for everyone – including the continuation of a fuel tax differential for consumers, infrastructure dollars and tax credits for fuel retailers, and an increased biodiesel production tax credit for producers. Previous legislation successfully encouraged blends of 11% biodiesel (B11), but in a sense, we have reached a plateau. We are eager to move Iowa’s energy transformation onward and upward toward more B20.

“This legislation comes at a critical time in history. Supply chain challenges and federal policy limbo make this a precarious time for our industry. 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 impacts consumers. A diverse fuel supply with more low-carbon fuel made in America benefits everyone. The passage of the Governor’s Biofuel Access Bill makes us optimistic for Iowa’s future as the leading biodiesel-producing state. We thank House and Senate leaders, and the governor, for making this bill a priority in the session.”

The biodiesel portion of the bill increases the Biodiesel Production Tax Credit from 2 to 4 cents per gallon; maintains the current Biodiesel Fuel Tax Differential, but applies this to blends of 20% biodiesel (B20) rather than B11; extends fuel retailer tax credits for B11 and higher, while introducing new credits for higher blends like B20 and (7 cpg for B20 and 10 cpg for B30); and expands statewide funding for the state’s Renewable Fuel Infrastructure Program. The governor originally proposed the legislation, dubbed The Governor’s Biofuel Access Bill, and she is anticipated to sign the bill.

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Biodiesel is an advanced biofuel made from agricultural byproducts and co-products, such as soybean oil. For more information on biodiesel, visit iowabiodiesel.org.

Not funded by the soybean checkoff


The Iowa Soybean Association (www.iasoybeans.com) is “Driven To Deliver” increased soybean demand through market development and new uses, farmer-focused research and results, timely information and know-how and policy initiatives enabling farmers and the industry to flourish. Founded in 1964 by farmers to serve farmers, ISA is governed by a board of 22 farmers to advocate on behalf of the state’s 40,000 soybean producers, including more than 12,000 ISA farmer members and industry stakeholders.

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