Providing Much Needed Boost to Beleaguered Biofuels Producers, Governor Reynolds Signs Biofuel Tax Differential Extension into Law

At Bill Signing Ceremony, Reynolds Announces $7 million of Additional Funding for Iowa’s Biofuels Infrastructure Grant Program

Contact: Cassidy Walter

STEAMBOAT ROCK, IOWA – Today in front of dozens of biofuel supporters at Pine Lake Corn Processors ethanol plant, Iowa Governor Kim Reynolds signed Senate File 2403 into law, extending Iowa’s biofuel tax differentials to June 30, 2026.

The bill unanimously passed both of Iowa’s legislative chambers earlier this June. It extends and modernizes fuel tax differentials for E15 and higher ethanol blends and B11 and higher biodiesel blends, which would have expired today, June 30, 2020.

“At today’s bill signing we say thank you to Governor Kim Reynolds for her leadership and strong support for Iowa biofuels,” said Iowa Renewable Fuels Association Policy Director Nathan Hohnstein. “Reauthorization of the biofuel tax differentials will continue to expand Iowans’ access to cleaner-burning, home-grown biofuel blends like E15 and B11, supporting Iowa’s environment and economy at a time when it is much needed.

“We also thank Iowa’s legislative leaders for prioritizing this important bill for a vote during this truncated legislative session. Finally, we must thank Senator Randy Feenstra and Representative Louis Zumbach for managing the bill through to passage. Without such dedicated support by Iowa’s elected officials, today’s celebration would not have been possible.”

Reynolds also announced at the ceremony her intention to use $7 million of Iowa’s federal CARES Act funding to expand the Iowa Renewable Fuels Infrastructure Program, which provides fuel retailers with cost-share grants to upgrade fueling infrastructure to offer higher blends of biofuels.

“The Governor’s intention to boost funding for Iowa’s biofuel infrastructure grant program is a terrific and welcome surprise,” Hohnstein said. “Iowa’s biofuels producers have been hit hard by the COVID-19 pandemic as travel has declined and fuel demand has plummeted. This additional funding will go a long way to increasing consumer access to higher biofuel blends and boosting biofuel demand!”

Since the first fuel tax differential bill was passed, E10 and higher ethanol blends and B11 and higher biodiesel blends have grown to make up roughly 90% and 57% of sales in 2019, respectively. The new fuel tax differential modernizes the ethanol differential by applying it only to E15 and higher blends.

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing over 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce nearly 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: