Biodiesel at the pump

More than 700 fueling stations in Iowa (40%) offer biodiesel blends – up from 205 stations in 2010. (Photo: Iowa Biodiesel Board)

Governor Signs Bill to Increase Critical Renewable Fuel Infrastructure Funds

May 10, 2024 | Brock Johnston

Ankeny, Iowa – The Iowa Soybean Association (ISA) and the Iowa Biodiesel Board (IBB) commended Governor Kim Reynolds and the state legislature for their decisive action in boosting funding for renewable fuels infrastructure. Reynolds signed legislation today that marks another significant step forward in Iowa's commitment to expanding the use of renewable fuels like biodiesel.

Effective July 1, the Iowa Renewable Fuel Infrastructure Program will see an increase in annual funding from $10 million to $14 million. It is specifically allocated for biodiesel and ethanol projects.

Using grant incentives, the program helps retail operators of motor fuel dispensing sites or fueling stations modernize their equipment to better accommodate the expanded use of renewable fuels in Iowa.

“Increasing demand and accessibility for biodiesel is a top priority for Iowa farmers,” said Suzanne Shirbroun, ISA president and farmer from Farmersburg. “A strong biodiesel market helps support our state’s thriving agriculture industry by increasing the per-bushel price of soybeans.”

“This continued significant IRFIP funding underscores Iowa's dedication to fostering a sustainable and environmentally conscious energy landscape,” said Grant Kimberley, IBB executive director and ISA senior director of market development. "The more infrastructure we have available, the more biodiesel is accessible to consumers and utilized in the market."

Kimberley highlighted that recipients of the infrastructure cost-share dollars must offer biodiesel blended fuel for a minimum of 5 years, demonstrating a long-term commitment to promoting renewable fuels.

The revised program guidelines include an increase in the cap for retail biodiesel projects, now set at $1.75 million compared to the previous $1.25 million. This adjustment results in an additional $500,000 annually allocated to retail biodiesel projects.

As of January, there were 35 biodiesel retail applications on hold totaling $1.7 million. These applications, if approved, would use almost all the FY25 funding at the new increased level, highlighting the demand for expanded infrastructure support.

The program offers reimbursement of up to 70% of a fuel retailer’s costs up to $50,000 for specific project components, with a 5-year commitment required for storing and selling biodiesel-blended fuels. Projects focused on heated biodiesel terminal equipment and infrastructure are eligible for a 50% grant up to $100,000 per project.

Iowa continues to lead the nation in both biodiesel production and comprehensive pro-biodiesel state policies, the groups said. 


Not funded by the soybean checkoff

The Iowa Soybean Association ( 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 15,000 ISA farmer members and industry stakeholders.