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By Lynn L. Bergeson The Iowa Economic Development Authority (IEDA) is offering the first Renewable Chemicals Production (RCP) Tax Credit in the United States. What does this mean? It means that the program provides an opportunity for industry stakeholders to advance Iowa’s economy through a focus on biomass as a feedstock for the production of renewable chemicals. As an attempt to incentivize the production of 30 high-value chemicals derived from biomass feedstocks, IEDA developed the RCP...

By Lynn L. Bergeson On December 3, 2019, Governor of Iowa, Kim Reynolds, signed an Executive Order that requires all new contracts for the purchase of state vehicles with diesel engines to have written support from the manufacturer to use B20 biodiesel (a mix of 20 percent biodiesel and 80 percent petroleum-based diesel) or more. The Iowa Department of Transportation (DOT) started using biodiesel blends in 1994. B20 is used for most of the year already, in most equipment with a diesel engine,...

Bloomberg Politics, “Trump Tells EPA to Boost Biofuels after Iowa Uproar” International Civil Aviation Organization (ICAO), “ICAO Conference on Sustainable Alternative Fuels Agrees on New 2050 Vision to Guide Future Development and Deployment” Portland Press Herald, “LePage Invites Bio-Based Businesses to Call Maine Home” Digital Journal, “Florida Aims to Become Regional Alternative Jet Fuels Hub” Triple Pundit, “Over Half a Trillion Soybeans...

By Lauren M. Graham, Ph.D. Last week, Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) responded to the U.S. Environmental Protection Agency’s (EPA) Notice of Data Availability (NODA) regarding the Renewable Fuel Standard (RFS) volume requirements (see EPA Issues NODA Regarding RFS Program).  On September 27, 2017, Ernst sent a letter to President Trump expressing concern over the proposed reduction in the volume requirements for 2018 and 2019.  In the letter, Ernst...

By Lauren M. Graham, Ph.D. In a paper forthcoming in the American Journal of Agricultural Economics, Iowa State researchers demonstrate that their tractable multi-market equilibrium model designed to evaluate alternative biofuel policies confirms that the current RFS program benefits the agriculture sector, and leads to overall welfare gains for the U.S.  The model considers biodiesel and ethanol markets and is simulated to analyze alternative scenarios, including the repeal of all RFS...

By Kathleen M. Roberts On May 12, 2017, the Iowa Biodiesel Board (IBB) praised Governor Terry Branstad for signing into law the Rebuild Iowa Infrastructure Fund bill (HF 643), which provides $3 million in funding for the Renewable Fuels Infrastructure Program.  IBB stated that it, along with industry partners, worked closely with legislature to ensure the funding language was included in Iowa’s budget, and acknowledged Branstad for being a steadfast supporter of funding renewable...

Platts, “White House Reviews US EPA's Proposed 2018-19 Biofuel Blending Volumes” U.S. Department of Energy, “Map Out Your Career in the Bioeconomy with BETO’s New Bioenergy Career Map!” Iowa Farm Bureau, “Perdue Pledges Support for Trade and Biofuels during Iowa Visit” Lancaster University, “New Breakthrough Makes it Easier to Turn Old Coffee Waste into Cleaner Biofuels”

By Kathleen M. Roberts On April 13, 2017, the Iowa Renewable Fuels Association (IRFA) released a statement regarding the passage of a bill, HSB 187, by the Iowa House Appropriations Committee that would cut the value of the Iowa biofuels tax credits and complicate the mechanism for receiving the credit.  According to the bill, the value of the tax credits would be determined based on annual sales, and the amount of the credits would be capped on an annual, statewide basis.  The...

By Lauren M. Graham, Ph.D. On April 4, 2017, the Iowa Biodiesel Board (IBB) announced that the Iowa Department of Revenue’s 2016 Retailers Fuel Gallons Annual Report demonstrated that more than half of Iowa’s fuel retailers carried biodiesel blends in 2016.  In 2016, 344.8 million gallons of on-road biodiesel blends were sold, which accounts for 54.7 percent of total on-road diesel fuel sales.  The report also showed that twice as many gallons of 11 - 20 percent...

On February 16, 2017, a coalition of Iowa farmers, renewable fuel producers, and retailers urged Scott Pruitt, just prior to his being confirmed as the U.S. Environmental Protection Agency (EPA) Administrator, to protect the Renewable Fuel Standard (RFS) by rejecting the petition to change the program’s point of obligation.  The coalition, which includes the Iowa Renewable Fuels Association (IRFA), the Iowa Corn Growers Association (ICGA), Petroleum Marketers and Convenience Stores of...

On May 24, 2016, Iowan Governor Terry Branstad signed Senate File 2309, an Act providing for tax credits and refunds relating to renewable fuels including their component biofuels and including effective date provisions. The bill extends a state biodiesel production tax credit providing 2 cents per gallon (cpg) on the first 25 million gallons of production per biodiesel plant. The bill also extends a credit for petroleum retailers of 4.5 cpg on blends of 5 percent biodiesel or more through the...

On April 27, 2016, the Iowa Senate voted 49-0 to extend the Renewable Fuels Infrastructure Program (RFIP) through June 30, 2017. The legislation, House File 2464, was passed by the Iowa House 94-0 and provides funding for cost-share grants to upgrade fueling infrastructure. RFIP covers up to 70 percent of the installation cost of E15, E85, or biodiesel blend fuel pumps for Iowa retailers, up to $50,000 per project. "While we were hopeful for a long-term funding solution for the state's...

On April 6, 2016, Iowa Governor Terry Branstad signed Senate File 2300, creating a five cent tax credit, per pound of renewable chemicals produced from biomass feedstock between 2017 and 2026. Spokesman for Governor, Ben Hammes, stated, "Gov. Branstad believes this biochemical tax program will go even further to continue spurring economic growth all over Iowa, creating more high-quality jobs and attracting investments in renewable chemical manufacturing and advanced bio-refining." The...

On March 17, 2016, the Iowa State Senate voted 46-3 to approve Senate File 2300, a bill creating a production tax credit for renewable chemicals. The legislation was created to attract investment in renewable chemical manufacturing and biorefining to Iowa, and covers the production of higher value biochemicals from plant materials left over from biofuel production. The House Ways and Means Committee approved House File 2288, a companion bill, and sent the measure to the House floor. Senate File...

On January 14, 2016, a report titled "Biobased Chemicals: The Iowa Opportunity" was released by Iowa's Cultivation Corridor and the Iowa Biotechnology Association at the Iowa Statehouse. This report is based on research by Iowa State University professors and outlines opportunities for Iowa to capitalize on bioprocessing developments in the United States. While Iowa has the advantage of a strong biofuel industry, there is still a need for the Iowa legislature to address the needs...

Iowa Senate bill SF 350: the Renewable Chemical Production Tax Credit Program was introduced in March 2015, and is awaiting review in the Ways & Means Committee. If passed, the legislation will allow producers of renewable chemicals in Iowa to claim a five cent per pound tax credit, with a maximum credit of $1 million for businesses operating in Iowa for five years or less, and a maximum credit of $500,000 for businesses operating in Iowa for more than five years. Chemicals must have at...

Iowa Governor Terry Branstad (R), Lieutenant Governor Kim Reynolds, and State Secretary of Agriculture and Land Stewardship Bill Northey led an effort to send a letter to EPA requesting it to convene a field hearing in Iowa on the Agency's proposed 2014 RFS rule. The letter was signed by the entire Congressional delegation from Iowa. A copy of the letter is available online. EPA's proposed 2014 RFS rule would reduce the 2014 statutory gallon requirements for cellulosic biofuels, advanced...