Iowa is proud to be the nation’s top producer of ethanol, biodiesel, and the crops used to make it. These cleaner-burning, environmentally friendly renewable fuels contribute more than $4 billion to our state’s GDP and support more than 37,000 jobs for Iowans.
Governor Reynolds is committed to the continued growth of the renewable fuel industry. This year, she is introducing revised legislation that aims to significantly improve consumer access to higher biofuel blends like E-15 and B-20 and future-proof Iowa’s fuel infrastructure, ensuring lower-emission, lower-price options at the pump.
Governor Reynolds is also laying the foundation for Iowa to become a worldwide leader in carbon sequestration, creating another value-added market for farmers. After convening an industry-wide, expert-led task force during the fall of 2021, she is proposing increased investments in research and programming to increase carbon value and expand participation in carbon markets.
Governor Reynolds proposes:
- All retailers with compatible infrastructure must offer E-15 by January 1, 2026.
- Any newly installed or upgraded fuel infrastructure must be E-85 or B-20 compatible.
- Invest $10 million in state funding each year for five years in the Renewable Fuels Infrastructure Program, on top of the nearly $50 million in state and federal funds already invested.
- Optimize and extend fuel retailer tax credits to incentivize higher blends of ethanol and biodiesel.
- Codify the Governor’s 2019 Executive Order which requires state vehicles with diesel engines to be B-20 biodiesel compatible.
- Require the Iowa Department of Administrative Services to report annually on biofuel usage by the state’s vehicle fleet.
- The bill will remain revenue neutral, while increasing savings to the Road Use Tax Fund and imposing no additional cost for Iowans.