Iowa’s governor signs bill to strengthen renewable fuel infrastructure in the state

Through grant incentives, the program helps retail operators of motor fuel dispensaries or service stations upgrade equipment to better accommodate the increased use of renewable fuels in Iowa.

Supporters of the program, including the Iowa Biodiesel Board and the Iowa Soybean Association, called the legislation “another significant step forward in Iowa’s commitment to the greater use of renewable fuels like biodiesel.”

“This continued significant funding for IRFIP underscores Iowa’s commitment to supporting a sustainable and environmentally conscious energy landscape,” Grant Kimberley, executive director of the Iowa Biodiesel Board, said in a written statement.

“The more infrastructure we have at our disposal, the more biodiesel is available to consumers and used in the market,” he said

Kimberley noted that recipients of infrastructure cost sharing dollars must offer a biodiesel fuel blend for at least 5 years, demonstrating a long-term commitment to promoting renewable fuels.

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

As of January, 35 biodiesel retail applications were on hold for a total amount of $1.7 million. These proposals, if approved, would use almost all of FY25 funding at the new, increased level, underscoring the need for expanded infrastructure support.

“The growing demand and availability of biodiesel is a top priority for Iowa farmers,” said Suzanne Shirbroun, president of the Iowa Soybean Association.

“With planting season well underway, we are pleased with lawmakers’ continued support for this important program and look forward to seeing biodiesel have an even greater footprint in our cities and rural communities,” Shirbroun said.

The program offers reimbursement of up to 70% of fuel retailer costs up to $50,000 for certain project components, with a 5-year commitment required to store and sell biodiesel blended fuels. Projects focusing on final heated biodiesel equipment and infrastructure are eligible for a 50% grant up to $100,000 per project.

The groups said Iowa continues to lead the nation in both biodiesel production and a comprehensive state pro-biodiesel policy.

Iowa ethanol production increased to a record 4.6 billion gallons in 2023, up from the previous record of 4.5 billion gallons in 2022, according to the Iowa Renewable Fuels Association.

Biodiesel production in Iowa remains steady at 350 million gallons, almost the same as the 349 million gallons produced in 2022, the group said.

A recent economic analysis commissioned by the Renewable Fuels Association found that renewable fuels and biofuel production in particular generate more than $6.5 billion, or about 3% annually, of Iowa’s GDP; generates $3.2 billion in income for Iowa households; and supports nearly 52,000 jobs across Iowa’s economy.