Iowa biofuel bill moves forward with Senate ag committee approval

By Erin Voegele | February 09, 2022

An Iowa bill that aims to increase consumer access for higher blends of ethanol and biodiesel, including E15 and B20, is one step closer to implementation. The legislation was approved by the Senate Agriculture Committee on Feb. 8, clearing the way for a full Senate vote.

The legislation, H.F. 2128, was introduced by Iowa Gov. Kim Reynolds in January. The Iowa House of Representatives voted 82 to 10 in favor of legislation on Feb. 2.

The bill, also known as the Governor’s Biofuel Access Bill, updates and expands both the state’s biodiesel production tax credit and the biodiesel fuel tax differential. It also shifts the current fuel retailer tax credit for blends of B11 to encourage higher blends of biodiesel, introducing new credits for blends like B20 and B30. In addition, it codifies an executive order issued in 2019 requiring that all diesel engine vehicles in the state fleet to be compatible with higher blends of biodiesel.

The legislation also expands the state’s Renewable Fuels Infrastructure Program, doubling funding for the program to $10 million per year for the next five years. The bill requires that any newly installed or upgraded fuel infrastructure must be E85 or B20 compatible. For ethanol, all retailers with compatible infrastructure would be required offer E15 by 2026.

Additional information on H.F. 2128 is available on the IRFA website