State report shows biodiesel blends gain ground in Iowa

by | May 15, 2023 | 5 Ag Stories, News

The availability of biodiesel blends at the pump continues to expand in Iowa, making up 70 percent of reported on-road diesel sales in the state in 2022. That?s according to the latest Retailers Fuel Gallons Report from the Iowa Department of Revenue, which keeps track of annual biofuels sales through a survey of fuel retailers.

The number of reported on-road (taxable) gallons of diesel containing biodiesel equaled 441 million for the calendar year. Of that, blends of 1-to-10% biodiesel (B1 ? B10) sold equaled 76 million gallons; B11?B19 equaled 147 million gallons; and B20 or higher blends made up the lion?s share, at 217.7 million gallons.

?As a top agriculture state, and the leading biodiesel-producing state, we?re incredibly proud to see Iowa walk-the-walk when it comes to biodiesel usage at the consumer level, too,? said Grant Kimberley, executive director of the Iowa Biodiesel Board.

Kimberley credited the state?s proactive policies, including a credit for fuel retailers and a fuel tax differential, as playing a pivotal role in the success at the pump.

In 2022, the Iowa Legislature reworked and increased some of the credits available to encourage higher blends of biodiesel in the state. Since those provisions just recently took effect, fuel retailer reports in future years are expected to show even more availability of higher blends, Kimberley said.

Iowa continues to blaze trails as the first state to incentivize B30. A new state regulation (ARC 6805C), needed to trigger the 10 cent-per-gallon B30 retail tax incentive, went into effect in February.

?As we grapple with uncertainty on federal biofuel programs, it?s no accident that Iowa?s biodiesel manufacturing sector is thriving for now,? Kimberley said. ?Our aspirational state biodiesel policies have effectively increased production and consumption in Iowa, benefiting our economy and environment. We thank Governor Kim Reynolds for her leadership on this, and our legislature for recognizing the value.?

In order to help fuel distributors and fleets learn more about the B30 incentive and how it could benefit business and customers, a virtual Iowa B30 Workshop will take place on Tuesday, May 23. Chevron REG, an Iowa-headquartered biodiesel and renewable diesel producer, will host the webinar. IBB?s Kimberley will present on the legislation.

Biodiesel is an advanced biofuel made from agricultural byproducts and co-products, such as soybean oil. The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.