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Missouri law creates new biofuel incentives

Earlier this week, Missouri Governor Mike Parson signed legislation that included new incentives to boost biodiesel and ethanol sales. 

House Bill 3 creates a 2¢ per-gallon retail incentive for diesel blends containing between 5% and 10% biodiesel. Blends containing between 11% and 20% will receive a 5¢ per-gallon retail incentive.

The bill also establishes a 2¢ per-gallon incentive for biodiesel produced in the state. 

“The biodiesel industry is an important partner for farmers and entrepreneurs in Missouri and across the Midwest,” says Parson. “We are proud to support this industry that helps create good-paying jobs, while ensuring our nation benefits from homegrown fuels that provide energy security and environmental benefits.”

For higher ethanol blends like E15, which contains 15% ethanol, the bill includes a 5¢ per-gallon retail incentive. 

The incentives will expire Dec. 31, 2028. 

Growth Energy CEO Emily Skor says "these targeted incentives will open up a wealth of new economic opportunities for farmers, biofuel producers, and rural families, while boosting Missouri’s leadership on clean, domestic energy.” Growth Energy is a trade association representing American ethanol producers. 

Clean Fuels Alliance America, a trade association representing biodiesel and renewable diesel producers, also applauded the legislation. 

“Missouri joins the ranks of Iowa, Illinois, Minnesota, and others with some of the most forward-thinking legislation that values the production and use of biodiesel," says Clean Fuels CEO Donnell Rehagen. "It is our nation’s best option here-and-now to decarbonize heavy-duty transportation.”

According to Clean Fuels, Missouri’s biodiesel industry adds around $266 million in value to the state’s soybean crop. The Renewable Fuels Association says American ethanol production adds approximately $2.42 in value to a bushel of corn. 

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