Iowa Soybean Farmers, Biodiesel Producers Urge Action to Expand Biofuels Access

January 31, 2022

Bill with key biofuels tax and infrastructure provisions heads to House floor

Ankeny, Iowa — The Iowa Soybean Association (ISA) and Iowa Biodiesel Board (IBB) are urging the passage of House File 2128, also known as the Governor’s Biofuel Access Bill. It would improve access to and incentivize the production of homegrown biodiesel in Iowa.

“It’s time to act,” said ISA President Robb Ewoldt, a soybean farmer near Davenport who uses biodiesel to grow crops and transport freight. “We’ve gone to great lengths over the past year to help the state revise its approach to expanding biofuels access and use. We’ve listened and modified the legislation. It’s time to come together and get this done.”

The Governor’s Biofuel Access Bill updates and expands both the Biodiesel Production Tax Credit and Biodiesel Fuel Tax Differential. The bill would also shift a current fuel retailer tax credit for blends of 11% biodiesel (B11) to encourage higher blends of biodiesel, introducing new credits for blends like B20 and B30. Additionally, it expands the state’s Renewable Fuels Infrastructure Program (RFIP).

"These incentives will assist in increasing the production and usage of cleaner burning fuels like biodiesel,” Ewoldt says.

Iowa biodiesel production totaled nearly 340 million gallons in 2021.

“This policy would help Iowa remain the number one biodiesel-producing state, which in turn helps create demand for Iowa’s soybean oil,” says Grant Kimberley, ISA sr. 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. We commend Governor Reynolds for her leadership on this legislation.”

Kimberley noted that 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.

Strong state policies also help the state’s 11 production facilities weather the uncertainty of federal policies like the Renewable Fuel Standard, Kimberley adds, even as certain states ramp up low-carbon fuel efforts on their own.

“Iowa’s answer to the nationwide demand for low-carbon fuels is biodiesel,” Kimberley says. “We ask the House to recognize that as our nation’s approach to energy evolves, our state can be front and center, and reap the benefits. This is an investment in Iowa’s economy that will help our state thrive for years to come.”

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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

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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 37,000 soybean producers, including more than 15,000 ISA farmer members and industry stakeholders.

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