Ag Group Wants Mandatory Use of Biofuels at All Iowa Pumps

by TOM (KIWA Radio) The head of Iowa’s largest agricultural organization is urging state lawmakers to reconsider a measure which would mandate the use of renewable fuels in Iowa that are produced in-state. Iowa Farm Bureau president Brent Johnson says the Iowa Biofuels Standard was narrowly defeated in the legislature in 2021.

He says the organization has some work to do to rebuild consumer support and to get the legislative backing needed for the mandate to pass. Johnson is also urging the EPA to uphold the Renewable Fuels Standard RVO or Renewable Volume Obligation levels, after reports the Biden administration may drop the proposed blending levels below 15-billion gallons.

Johnson says the Farm Bureau supports Governor Kim Reynolds’ move, asking the EPA to provide a waiver to sell E-15 year-round in Iowa. READ MORE includes AUDIO

Excerpt from Des Moines Register: Fuel retailers like gas stations would be required to offer gasoline with 15% ethanol, known as E15, beginning in 2026. That would greatly expand the availability of E15, which is currently available in a fraction of Iowa’s gas stations and truck stops.

But, unlike last year's version, the requirement only applies if the gas station has infrastructure that is compatible with the higher blend of ethanol. Reynolds' previous proposal would have required many gas stations, truck stops and convenience stores to upgrade their equipment to offer the higher ethanol blend, which retailers said would result in a steep cost.

For gas stations that don’t have compatible equipment — such as tanks that are too old — the bill provides a waiver option. The retailer can either submit an application describing why its equipment can’t support the higher ethanol blend or can hire someone to inspect its facility and certify that it can’t meet the requirement.

Reynolds is also proposing spending $10 million annually over five years to upgrade Iowa pumps so they can use higher ethanol blends and increasing tax credits for biodiesel production and fuel retailers to expand access.

And, under the bill, any new or upgraded fuel infrastructure must be compatible with E85, or gasoline with 85% ethanol, and B20, which contains at least 20% biodiesel, starting next year.

“Iowans will have more choices at the pump, rather than fewer,” said Monte Shaw, the Iowa Renewable Fuels Association’s executive director.

Shaw said about 300 of 2,000 Iowa convenience stores now offer E15. His group estimates that 900 to 1,000 of the gasoline stations would offer E15 by 2026, based on the age of the facilities and their need to upgrade infrastructure.

At the Renewable Fuels Summit and in her Condition of the State address, Reynolds has contrasted Iowa’s support for ethanol and biodiesel with President Joe Biden’s efforts to encourage electric vehicles.

She said the Biden administration has focused “all its efforts on electric vehicles and is actively attempting to eliminate gas-powered cars. And that’s a mistake, especially as China looks to lock up the precious metals that make the EV batteries."

Reynolds, along with Iowa agriculture and renewable fuel groups, have criticized Biden’s Environmental Protection Agency for proposing to retroactively cut the U.S. ethanol blending requirements for 2020, which was set in 2019. EPA also proposes establishing the 2021 mandate for corn ethanol below the statutory requirement.

The moves would reduce the amount of ethanol that oil refiners have to blend into their gasoline under the federal Renewable Fuel Standard, causing a financial loss for Iowa-based ethanol producers.

"EPA under both parties have walked away from its commitment to renewable fuels, and we’ve had to bring them back," Reynolds said. "And we need to do it again." READ MORE