Iowa Senate Approves 5% Biodiesel Mandate

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Micah Walter/Bloomberg News

The Iowa Senate approved a bill last week that would require that diesel fuel sold in the state contain 5% biofuel, the Des Moines Register reported.

Retailers would earn a tax credit if their diesel contained 10% biofuel or higher, the paper reported.

If approved, the measure would add Iowa to a list of seven other states that require biodiesel to be blended with diesel, the National Biodiesel Board said in a statement.

State Sen. Jack Kibbie told the Register that the mandate, which would go into effect July 1 if the House and governor approve it, would save 1 million barrels of foreign oil per year.



Truckers have objected to biodiesel mandates, reporting that the blended fuel gels in cold weather, clogging fuel lines in diesel engines.