ISG’s B20 Legislation Heads to Governor's Desk

(Illinois Soybean Growers) The Illinois Soybean Growers (ISG) is celebrating the passage of the organization’s B20 Legislation, sponsored by State Senator Patrick Joyce (D–Essex) and State Representative Eva Dina Delgado (D–Chicago). The legislation passed both chambers of the Illinois General Assembly and now heads to the desk of Governor Pritzker.

“This hard-won victory is the result of ISG’s unrelenting collaboration with the bill sponsors Senator Patrick Joyce and Representative Eva Dina Delgado, numerous partners across agriculture, biofuels producers, transportation stakeholders and clean air advocates who are all working to present a viable and immediate solution to combat carbon emissions in the transportation sector,” says ISA Chairman, Steve Pitstick. “When signed into law this will transition the sales tax exemption from 10% biodiesel blends to 19%, which will not only significantly enhance the environmental benefits of biodiesel, but also lead to strengthened demand for this Illinois grown, renewable fuel by about 125 million gallons.”

In addition to these tremendous boons to Illinois’ agricultural economy, biodiesel also offers immense health and environmental benefits. Biodiesel reduces lifecycle greenhouse gas emissions by up to 86%, and once the law is fully implemented it is expected to reduce GHG emissions by nearly 200 thousand tons.

Additionally, biodiesel is a reliable, high-performance fuel that works in any diesel engine without modifications. Several transit fleet leaders in Illinois have already adopted blends of 20% biodiesel, including: The Chicago Park District, the Forest Preserve District of DuPage County, the Cook-Illinois Corporation, and numerous municipality fleets in the Chicagoland area.

“This is a proud day for the Illinois Soybean Growers, and the 43,000 soybean producers in our state,” says Pitstick. “When signed by Governor Pritzker this law will improve our environment, and will continue the major role that soybeans and biodiesel have played in improving air quality for millions of Illinoisans. This will also provide support and certainty for the Illinois biodiesel industry and the use of Illinois grown fuels to meet Illinois’ goals.”

The Illinois Soybean Association (ISA) checkoff and membership programs represent more than 43,000 soybean farmers in Illinois. The checkoff funds market development and utilization efforts while the membership program supports the government relations interests of Illinois soybean farmers at the local, state, and national level, through the Illinois Soybean Growers (ISG). ISA upholds the interests of Illinois soybean producers through promotion, advocacy, and education with the vision of becoming a market leader in sustainable soybean production and profitability. For more information, visit the website www.ilsoy.org and ilsoygrowers.com. READ MORE

Excerpt from Prairie Farmer: A new tax exemption law favors higher biodiesel blends in Illinois, positioning the biofuel as a way for companies — and politicians — to meet sustainability goals, all with a homegrown product.

This spring, the Illinois General Assembly passed a new bill that gives big incentives to higher biodiesel blends in the state. Gov. J.B. Pritzker signed it into law in late April, and the folks who pushed it forward say it’s the biggest legislative move in biofuels in nearly 30 years — and it’s good for more than just soybean demand.

The law extends the current B10 sales tax exemption until 2023 and then increases the biodiesel blend level that gets an exemption to B13 in 2024, B15 in 2025 and B19 in 2026. It has the potential to increase demand for soybean oil by a third or more. That’s a big deal in Illinois, which currently ranks fourth in biofuel production and third in consumption.

“The new sales tax exemption could drive the use of B20 in 2026 and consume about 375 million gallons of B100 each year, which would be equivalent of oil from 240 million bushels of soybeans,” Larson adds.

The 2003 legislation had a five-year sunset, which required lobbying and education efforts every five years to get it passed — through budget stalemates and at least one appearance on Pritzker’s tax exemption chopping block in 2021. They managed to save it every time, and Larson says those efforts resulted in better-educated lawmakers.

ISA lobbied for the current legislation for the past three years, with the help of Illinois ag groups and some less likely partners — including Chicagoland fleets, railroads and legislators. Some groups came onboard because using biofuels gives them a positive story to tell about combating emissions. Predictably, petroleum groups were the most organized opposition.

Steve Pitstick, ISA chairman and Maple Park, Ill., farmer, says he had no idea what went into getting a bill like this passed.

“I did not know there was a convenience-store lobby!” he says, laughing and adding that everybody’s got their position and their issues, and ISA and its partners had to work through them. Pitstick says the big fleets around Chicago, like the Chicago Park District, had been using biodiesel for years and knew it worked for them.

They may use it at a greater rate than farmers. Pitstick says some farmers may hesitate due to a bad experience. Ten years ago, when biodiesel was first on the market, they learned it couldn’t sit for six months because it would get rancid and plug up filters. But the industry fixed that.

“I’ve had no problem with it recently,” Pitstick says. “I don’t see a reason why all farmers aren’t using it.”

Still, Pitstick says the new exemption law is a huge win for Illinois agriculture, in part due to current conversation around sustainability.

“There’s potential for growth in the suburban counties because of clean air issues,” says Pitstick, who farms right up to the western suburbs. “The addition of soybean oil and biodiesel will help in a time when everybody’s paying attention to green energy. It’s a perfect time for that.”

Ag’s a player

Larson wants to build on their legislative success, showing politicians that ag can play a huge role in helping them meet climate change goals, using an Illinois product. The three largest biodiesel plants in Illinois currently produce 180 million gallons annually, located at Danville, Seneca and Gilman, Ill.

Plus, Marquis Energy is partnering with LanzaJet to build a sustainable jet fuel plant at Hennepin, Ill. The plant would produce 120 million gallons annually, using low-carbon feedstocks, and would deliver the fuel to O’Hare and Midway airports near Chicago. Whether that feedstock will come from corn or soybeans is still unknown. READ MORE