Biodiesel Use on the Rise in Iowa

John Davis

irfaBiodiesel continues to be a pretty popular fuel in Iowa. This news release from the Iowa Renewable Fuels Association (IRFA) says the state’s revenue department data shows pure biodiesel (B100) sales in 2014 increased by more than 15 percent over 2013 to an all-time-high of 33.3 million gallons and now accounts for 4.6 percent of Iowa’s total diesel supply, up slightly from 2013.

Additionally, biodiesel is blended into almost 50 percent of all diesel sold, with an average blend level that climbed to 9.4 percent. The increased average blend level is largely due to a sizeable shift amongst retailers from B10 (10 percent biodiesel) in 2013 to B20 (20 percent biodiesel) in 2014.

“In the face of severe federal policy uncertainty, Iowa’s retailers and diesel users remained committed to cleaner-burning biodiesel in 2014,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “With the expiration of the federal biodiesel tax credit and uncertainty over the RFS, the increases in biodiesel sales and blending rates demonstrates the effectiveness of Iowa’s forward-thinking state policies. Policy makers in Iowa have wisely decided that cracking the petroleum monopoly cannot be left to federal policies alone – too much is at stake for Iowa’s economy and consumers. If the feds can reinstate the blenders’ tax credit and reenergize the RFS, Iowa will no doubt see even bigger gains in replacing foreign oil with homegrown biodiesel.”

Iowa has also shown its commitment to biodiesel by providing a tax credit to retailers selling B5 and higher blends, and starting this summer, Iowans buying B11 and higher blends will pay 3 cents per gallon less in state fuel taxes.

Biodiesel, Iowa RFA