Photo: Joclyn Bushman/Iowa Soybean Association

Gov. Reynolds signs Iowa's comprehensive biofuels legislation into law from the Cannon/Wassenaar farm near Prairie City. (Photo: Joclyn Bushman/Iowa Soybean Association)

Iowa Soybean Association, Iowa Biodiesel Board Laud Governor’s Signing of Historic Bill

May 17, 2022

Ankeny, Iowa – Governor Kim Reynolds today signed into law some of the nation’s most comprehensive biofuels legislation, a move applauded by the Iowa Soybean Association (ISA) and Iowa Biodiesel Board (IBB). The legislation (HF2128) will encourage the sale of higher blends of biodiesel through an incentive-based approach. It will also make E15 ethanol more available statewide, and updates infrastructure cost-share opportunities for retailers to improve access to higher blends of biofuels.

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

“Passage of this legislation signifies a huge win for Iowa’s 40,000 soybean farmers and all Iowans. Over the past year, the state’s soybean growers have worked hard with a variety of stakeholders to help the state refine its approach to expanding biofuels production and access in a way that benefits everyone. This legislation positively contributes to farmer success, air quality and economic growth in our local communities. Biodiesel production supports 13% of the per bushel price of soybeans, which equated to approximately $1.78 per bushel in 2021. It also reduces feed costs for livestock producers by $25 to $40 per ton.

“We thank Governor Reynolds for her continued advocacy of Iowa soybean farmers and biodiesel, as well as the bipartisan coalition of support within the state legislature for helping to grow cleaner-burning fuel opportunities within our state.”

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

“We commend Governor Reynolds for leading the introduction of this legislation and making its passage a priority. She has shown herself time and again to be a national leader in fostering biofuels. We anticipate this will greatly increase consumer access to higher blends of biodiesel in Iowa. In fact, this is the first piece of legislation passed in the U.S. to incentivize 30% biodiesel (B30).

“In the face of market uncertainty, the expansion of our state’s producer credit offers a new cushion for biodiesel producers that is quite significant. Worldwide uncertainty and price instability impacts producers and consumers alike. A diverse fuel supply with more low-carbon fuel made in America benefits everyone from soybean farmers to the end consumer. We are eager to move Iowa’s energy transformation onward and upward toward more B20 and B30.”

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 (7 cpg for B20 and 10 cpg for B30); and updates the state’s Renewable Fuel Infrastructure Program to encourage higher blends.

ISA and IBB also thanked Sen. Dan Zumbach (R-Ryan), Sen. Waylon Brown (R-Osage) and Rep. Lee Hein (R-Monticello), whose leadership guided the bill through the General Assembly.


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

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.