According to the release, the biofuels standard establishes a minimum level of biodiesel to be blended in the state's diesel fuel pool, gradually increasing over time. Beginning in 2022, the legislation ensures that biodiesel comprises 11 pct of the diesel pool and provides tax credits for higher blends. The program expands to 20 pct biodiesel blends (B20) in future years.
The legislation also establishes new retail income tax incentives for fuel marketers and provides funding for biodiesel projects through the Iowa Renewable Fuels Infrastructure Program. Financial support for renewable fuels would also be made available from the Rebuild Iowa Infrastructure Fund.
(Source: Ag Processing Inc., PR, 23 Feb., 2021) Contact: Ag Processing Inc., Troy Alberts, VP Refined Oils and Renewable Fuels, 402-496-7809, www.agp.com
More Low-Carbon Energy News Ag Processing, Biofuel Blend,
For biodiesel, the bill would require most diesel sold in the state to be B11 blend during warmer months, beginning in 2022. The requirement would ramp up to B20 during warmer months in 2024 and later.
For ethanol, the bill would make E15 the standard fuel option by 2025. It would also update the E15 promotion tax credit to 3 cents per gallon year-round. Growth Energy estimates that over the first five years, the legislation would increase ethanol demand by more than 117 million gallons. (Source: Office of Iowa Gov. Kim Reynolds, Website PR, Feb., 2021) Contact: Office of Iowa Gov. Kim Reynolds, (515) 281-5211, www.governor.iowa.gov
More Low-Carbon Energy News Biofuel Blend, Iowa Biofuel Blend,
The report was authored by John Urbanchuck, managing partner at ABF Economics.
As we reported on 23 Jan., 2019, 2018 was a record year for ethanol production in Iowa with the state's ethanol production facilities producing 4.35 billion gallons -- 150 million gallons more than 2017 and 150 million gallons short of capacity. The Hawkeye State produces about 27 pct of total U.S. ethanol production.
Iowa's two cellulosic ethanol and 41 corn ethanol plants use more than 1.3 billion bpy of corn. Iowa also produced a record 365 million gallons of biodiesel in 2018 (Source: Iowa Renewable Fuels Assoc., Mar., 2019) Contact: IRFA, Monte Shaw, Exec. Dir., info@IowaRFA.org, (515) 252-6249, www.iowarfa.org
More Low-Carbon Energy News Iowa Biofuel, Monte Shaw, IRFA,