The list below contains summaries of all Iowa incentives and laws related to Biodiesel.
The Renewable Fuel Infrastructure Program provides financial assistance to E85 and biodiesel retailers. Cost-share grants are available for up to 70% of the total cost of the project, or $50,000, whichever is less, to upgrade or install new E85 or biodiesel infrastructure. Applicants may also qualify for supplemental incentives of up to 75% of the cost of making the improvement, or $30,000, whichever is less, to upgrade or replace an E85 fueling dispenser that has not been approved by an independent testing laboratory. The supplemental incentive is available only to applicants who made the improvement no later than 60 days after the date of the publication in the Iowa administrative bulletin of the state fire marshal's order providing that a commercially available fueling dispenser is listed as compatible for use with E85 by an independent testing laboratory. Biodiesel distributors may apply for a cost-share grant for infrastructure upgrades and installations at biodiesel terminal facilities. Facilities blending or dispensing blends ranging from B2 to B98 are eligible for up to 50% of the total project, or $50,000, whichever is less. Facilities blending or dispensing B99 or B100 are eligible for up to 50% of the total project, or $100,000, whichever is less. The Renewable Fuels Infrastructure Board was established under the guidance of the Iowa Department of Economic Development; this 11-member board has authority to determine the eligibility of applicants. (Reference Iowa Code 15G.202-15G.204)
Point of Contact
Business Finance Program
Program Coordinator
Iowa Department of Economic Development
Phone: (515) 725-3133
Fax: (515) 725-3010
businessfinance@iowa.gov
http://www.iowalifechanging.com
The Iowa Department of Natural Resources conducts marketing and education outreach to encourage the use of alternative fuels and, contingent upon funding, awards demonstration grants to individuals who purchase vehicles that operate on alternative fuels, including but not limited to E85, biodiesel, compressed natural gas, electricity, solar energy, or hydrogen. Individuals may use grants to conduct research connected with the fuel or the vehicle and to purchase the vehicle if the Department of Natural Resources retains the title of the vehicle, the vehicle is used for research, and the proceeds from the eventual sale of the vehicle are used for additional research. (Reference Iowa Code 214A.19)
The Iowa Energy Center administers the Alternate Energy Revolving Loan Program (AERLP) for alternative energy projects. Through a participation agreement with the project lender, the AERLP provides up to 50% of the cost of biomass or alternative fuel production projects, up to $1 million per facility. The AERLP funds are provided at 0% interest with the lender's funds bearing market interest. Fuel production facilities must be located in Iowa and funding is limited. (Reference Iowa Code 476.46)
The Value-Added Agriculture Program offers a combination of forgivable and traditional low-interest loans for business projects involving the production of alternative fuels. The mixture of forgivable and low-interest loans varies according to the size of the award. Research and development projects are not eligible for this program.
Point of Contact
Business Finance Program
Program Coordinator
Iowa Department of Economic Development
Phone: (515) 725-3133
Fax: (515) 725-3010
businessfinance@iowa.gov
http://www.iowalifechanging.com
The Enterprise Zone Program and the High Quality Jobs Program offer state tax incentives to business projects for the production of biomass or alternative fuels. Depending on the program, incentives may include: an investment tax credit equal to a percentage of the qualifying investment, amortized over five years; a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction; a doubling of the state's refundable research activities credit; additional funding for training new employees; and a local property tax exemption of up to 100% of the value added to the property.
Point of Contact
Business Finance Program
Program Coordinator
Iowa Department of Economic Development
Phone: (515) 725-3133
Fax: (515) 725-3010
businessfinance@iowa.gov
http://www.iowalifechanging.com
The Iowa Power Fund, administered through the Office of Energy Independence, supports research, development, commercialization, and deployment of biofuels, renewable energy technologies, and energy efficiency technologies, while seeking to cut greenhouse gas emissions. An 18-member board runs the Iowa Power Fund, and a seven-member committee is responsible for reviewing financial assistance applications. (Reference Iowa Code 469.6-469.10)
Biodiesel blended fuel offered for sale that contains at least 6%, but no more than 20%, biodiesel must conform to ASTM D7467. (Reference Senate File 531, 2011)
The Iowa Legislature set a goal of replacing 25% of conventional fuels sold in the state with biofuels by January 1, 2020. To reach this goal, the state encourages retailers to sell a certain percentage of renewable fuels in relation to their total gasoline sales by offering tax credits. (Reference Iowa Code 422.11N)
Biodiesel and ethanol blend dispensers must be affixed with decals identifying the type of fuel blend. If fuel blends containing more than 10% ethanol are being dispensed, the decal must include the following statement: "For Flexible Fuel Vehicles Only." The Iowa Department of Agriculture and Land Stewardship (Department) may approve an application to place a decal in a special location on a pump with special lettering or colors if the decal appears clear and conspicuous to the consumer. The application must be made in writing to the Department. (Reference Iowa Code 214A.16)
Iowa has joined Indiana, Kansas, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.
As part of the Green Government Initiative, the Iowa Office of Energy Independence (OEI), Department of Administrative Services, Department of Natural Resources, and Department of Transportation lead a Biofuels Task Force. This group focuses on issues including increasing each state agency's use of biofuels to the maximum amount feasible and increasing the fuel efficiency of the state's vehicle fleet. The Biofuels Task Force sets specific five- and ten-year targets related to these areas, which are included in the Green Government Master Plan. Progress toward these goals will be tracked using a reporting system developed under the Green Government Initiative, and resulting data will be made public via the OEI whenever possible. (Reference Executive Order 6, 2008)
The Iowa Department of Transportation (IDOT) may purchase biodiesel for use in IDOT vehicles through the biodiesel fuel revolving fund created in the state treasury. The fund consists of money received from the sale of Energy Policy Act of 1992 (EPAct) credits IDOT has banked and other money IDOT has obtained or accepted for deposit in the fund. (Reference Iowa Code 307.20)
At least 10% of new light-duty vehicles purchased by institutions under the control of the state fleet administrator, Iowa Department of Transportation administrator, board of directors of community colleges, state board of regents, commission for the blind, and department of corrections must be capable of using alternative fuels. Vehicles and trucks purchased and directly used for law enforcement, off-road maintenance work, or to pull loaded trailers are exempt from this requirement. (Reference Iowa Code 8A.362, 216B.3, 260C.19A, 262.25A, 307.21 and 904.312A)