Iowa Gov. Kim Reynolds signs landmark biofuels bill

Iowa Gov. Kim Reynolds on Could 17 signed a invoice into legislation that makes Iowa the primary state within the nation to undertake E15 as its normal mix of gasoline. The laws, HF 2128, additionally expands client entry to greater blends of ethanol and biodiesel.

Reynolds launched the invoice in January. The Iowa Home on Feb. 2 voted 82 to 10 in favor of the invoice. The Senate authorized an amended model of the laws on April 26 by a vote of 42 to three. Shortly after the Senate vote, the Home additionally handed the amended invoice by a vote of 78 to 13.

“I’ve by no means been prouder than I’m as we speak to be the Governor of the primary ethanol and biodiesel-producing state within the nation,” Reynolds stated. “Iowa’s biofuel manufacturing powers our financial system and fuels the world, and this historic invoice units the stage for the one largest growth of biofuels in our state’s historical past. We’re sending a message that may’t be ignored: America’s vitality is rising proper right here in Iowa’s fields.” 

For ethanol, the laws makes E15 the usual mix of gasoline to be offered inside Iowa by 2026. It additionally updates the E15 promotion tax credit score to 9 cents per gallon year-round by way of 2025. For biodiesel, the invoice will increase the state’s biodiesel manufacturing tax credit score from 2 cents per gallon to 4 cents per gallon. It additionally maintains the present biodiesel gas tax differential however applies it to blends of B20 somewhat than B11 and extends gas retailer tax credit for B11 and better whereas introducing new credit for greater blends like B20 and B30. As well as, the laws helps elevated use of each biodiesel and ethanol by growing funding for the state’s renewable gas infrastructure program.

Progress Vitality is thanking Reynolds for main the best way for statewide E15 in Iowa. “Because of Governor Reynolds’ robust management, each Iowan will have the ability to entry reasonably priced, engine-kind and earth-friendly E15 on the pump,” stated Emily Skor, CEO of Progress Vitality. “The Biofuel Entry Invoice, first unveiled by Governor Reynolds originally of this 12 months, gives drivers throughout Iowa the chance to not solely get monetary savings on the pump however to make a easy change for the setting by merely altering gas. On the peak of excessive gasoline costs this spring, Iowans throughout the state have been saving about $.30 per gallon on the pump whereas filling up with E15. These significant financial savings might be accessible throughout the state, all 12 months lengthy. 

“Governor Reynolds’ laws additionally permits drivers to make a distinction for the setting by merely filling up on the pump. Analysis exhibits that statewide E15 in Iowa may lower local weather emissions by 180,000 metric tons – the equal of eradicating virtually 40,000 automobiles off the street throughout the state. This initiative is a win-win for the financial system and the setting, and we’re glad to see this laws enacted, which can have a everlasting affect for generations to come back.”

Clear Fuels Alliance America is applauding Reynolds and Iowa lawmakers for enacting the landmark laws. “We congratulate Iowa on this important laws, serving to to strengthen the biofuels hall all through the Midwest,” stated Donnell Rehagen, CEO of Clear Fuels. “Iowa joins the ranks of Illinois, Minnesota and others with a few of the most forwarding-thinking laws that values the manufacturing and use of biodiesel. Together with renewable diesel, it’s our nation’s most suitable choice here-and-now to decarbonize the heavy-duty transportation and residential heating oil sectors.”

The Iowa Biodiesel Board and Iowa Soybean Affiliation are additionally celebrating Iowa’s new biofuels legislation. “We applaud Home and Senate leaders, and Governor Reynolds, for making this invoice a precedence,” stated Grant Kimberley, Iowa Biodiesel Board govt director and Iowa Soybean Affiliation sr. director of market improvement. “Within the face of market uncertainty, the growth of our state’s producer credit score gives a brand new cushion for biodiesel producers that’s fairly important. Worldwide uncertainty and gas value instability additionally affect customers. A various gas provide with extra low-carbon gas made in America advantages everybody from soybean farmers to the top client.”

“Passage of this laws signifies an enormous win for Iowa’s 40,000 soybean farmers and all Iowans,” stated Robb Ewoldt, president of the ISA. “Over the previous 12 months, the state’s soybean growers have labored arduous with a wide range of stakeholders to assist the state refine its method to increasing biofuels manufacturing and entry in a manner that advantages everybody. This laws positively contributes to farmer success, air high quality and financial progress in our native communities. Biodiesel manufacturing helps 13 % of the per bushel value of soybeans, which equated to roughly $1.78 per bushel in 2021. It additionally reduces feed prices for livestock producers by $25 to $40 per ton.”

Ethanol producer Poet stated the invoice’s E15 provisions are game-changing. “Iowa as we speak, America tomorrow,” stated Jeff Broin, founder and CEO of Poet. “We see a nationwide marketplace for E15 on the horizon. E15 is fueling freedom, and Iowa is main the best way by increasing market share for American-made biofuels that Russia and OPEC can by no means take away.”

“Iowa’s game-changing E15 normal will transfer America one step nearer to vitality independence, save drivers cash on the pump, and develop reliable home markets for farm households,” Broin added. “Poet sincerely thanks Governor Reynolds and all our legislative champions in Iowa who’re profitable the combat for America’s gas.”