Iowa to give $15M in funding for Iowa renewable fuels producers for pandemic recovery effort

In Iowa, the Iowa Biodiesel Board reports that the state will dedicate more than $15 million of funding for Iowa renewable fuels producers as part of the pandemic economic recovery effort, as announced by Iowa Governor Kim Reynolds. Iowa Secretary of Agriculture Mike Naig said a $7 million infrastructure funding known as the Iowa Renewable Fuels Recovery Program using the state’s federal CARES Act funding, will provide grants to Iowa fuel retailers that add biofuels blends of at least 11 percent biodiesel (B11), or at least 15 percent ethanol (E15) to their stations.

“Virtually every industry has felt the negative economic impact of the COVID-19 pandemic, and with the pandemic’s corresponding drop in fuel demand, biodiesel has not escaped unscathed,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “I am grateful to the governor’s office for heeding our call to action on providing relief. Our state’s biodiesel producers, as well as soybean farmers, thank her for her work in shoring up this vital sector of Iowa’s economy.”

The relief funding will be awarded based on the number of qualifying gallons produced in the first quarter of 2020. No other state has offered direct aid to the biofuels sector yet. Learn more at IowaBusinessRecovery.com.

“We expect this increased funding to propel Iowa’s retail availability of renewable fuels to the next level,” Kimberley said. “We commend the governor and secretary for seeking innovative funding sources to expand consumer access to renewable fuels while providing increased market opportunities to our state’s biodiesel and soybean producers.”

The new grants are distinct from Iowa’s well-established biofuel infrastructure program, the Renewable Fuels Infrastructure Program (RFIP). Funding cannot be used on the same equipment or costs. However, RFIP funds may be used on the same project.

The new program will provide up to $30,000 per approved project. The department will award funds to projects completed by December 30, 2020, or for purchasing equipment delivered by December 30, 2020.

To learn more or apply, visit IowaAgriculture.gov/grants.