A bill for an act relating to the compatibility of passenger vehicles rented or leased by the state with biodiesel blended fuel classified as B-20 or higher, and including applicability provisions.(See HF 2671.)

Iowa House Study Bill 708 (HSB708) was introduced in February 2026 to ensure that passenger vehicles rented or leased by the state are compatible with biodiesel blended fuel classified as B-20 or higher. The bill required that manufacturers explicitly state that their diesel engines can operate on B-20 or higher biodiesel blends. This requirement was set to apply to contracts issued or renewed on or after July 1, 2026. ([legiscan.com](https://legiscan.com/IA/text/HSB708/2025?utm_source=openai))

The bill was seen as a positive step toward promoting the use of renewable energy sources in state operations, aligning with environmental sustainability goals. By ensuring that state-leased vehicles are compatible with higher biodiesel blends, the legislation aimed to reduce the state's carbon footprint and support the local biodiesel industry.

Some concerns were raised about the potential increase in vehicle costs and the availability of compatible vehicles. Critics questioned whether the bill could lead to higher leasing expenses for the state and whether the market could meet the demand for vehicles compatible with B-20 or higher biodiesel blends.