Iowa House Passes Bill Undercutting Infrastructure Critical to Ethanol and Agriculture

The Iowa House of Representatives passed House File 2104 by a 64-28 vote on Jan. 21, in the chamber’s latest effort to prevent Iowa agriculture from accessing emerging new markets. Support for undermining needed technologies is losing steam as the vote on a bill last year similarly designed to halt vital projects garnered 85 votes.

The bill, if enacted, would effectively halt the development of CCUS infrastructure necessary for Iowa farmers to compete in emerging markets such as sustainable aviation fuel (SAF) and marine fuel, and eliminate a source of new demand for corn at a time of growing supplies and falling prices. Tools and technologies like CCUS for Iowa ethanol plants is crucial to close the corn demand gap, according to a study released today by Decision Innovation Solutions.

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“HF 2104 blocks Iowa farmers from participating in ultra-low-carbon fuel markets just as demand for these innovative fuels takes off. Farm income is dropping, margins are shrinking, and bankruptcies are rising across rural Iowa communities,” said Monte Shaw, Executive Director of the Iowa Renewable Fuels Association. “Today’s vote shows the effort to essentially ban these vital projects is losing steam as more people recognize their importance and benefits to the public good. IRFA strongly urges the Iowa Senate to reject this restrictive, ill-considered legislation. Rather, the Senate should focus on improving landowner protections, reforming the permitting process, and providing a path forward for the CCUS projects.”

Iowa law has long respected the need to balance property rights with the development of critical infrastructure projects. This legislation overturns that balance, jeopardizing future investment and growth opportunities for Iowa farmers and ethanol producers. For example, competing states like Nebraska, Indiana, and Illinois have recently announced billions of dollars in new investments in projects to produce renewable natural gas, low-carbon ammonia, and expanded ethanol production.

“Iowa risks missing out on these same investment opportunities,” Shaw said. “While neighboring states are moving forward and attracting billions in new projects, HF 2104 makes it impossible for similar infrastructure to be built here. Enacting this bill would cement Iowa’s position on the sidelines.”