Gov. Reynolds Issues Statement on Bipartisan Passage of Biofuels Bill

April 27, 2022

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(Office of Governor Kim Reynolds (R-IA)) Gov. Reynolds released the following statement today in response to the legislature passing HF2128:

“This is a historic win for Iowa families, for our agriculture and biofuels industry, and for Iowa’s entire economy. By increasing access to more affordable, homegrown biofuels made right here in Iowa, we are lowering the price at the pump and getting America back on track toward energy independence.

“I am proud that my biofuels legislation will lead to the single greatest expansion of biofuels in our state’s history, while providing our industry with consistency in the face of ever-changing federal policy. I commend the legislature for working with me to advance this bill and I look forward to signing it into law in the coming days.” READ MORE

Iowa lawmakers OK bill mandating sale of E15 at gas stations (Associated Press)

More Iowa gas stations to sell fuel with higher ethanol blends under bill OK'd by Legislature: The bill would require gas stations to offer gasoline with 15% ethanol, known as E15, beginning in 2026. (Des Moines Register)

Biofuel, unemployment, and childcare bills pass as end of legislative session nears (WHO)

Iowa House, Senate pass governor’s biofuels bill (Ethanol Producer Magazine)

Naig Applauds Passage of Legislation to Bolster Iowa’s Biofuels Industry (EIN Presswire)

Opinion: Iowa biofuels bill's benefits will be fleeting (Des Moines Register)

REYNOLDS CREDITS WORK BETWEEN SESSIONS FOR BIOFUELS ACCESS BILL SUCCESS (Brownfield Ag News)

Iowa biofuels bill to help farmers, consumers (Wallaces Farmer)

More Iowa gas stations to sell fuel with higher ethanol blends under bill OK'd by Legislature -- The bill would require gas stations to offer gasoline with 15% ethanol, known as E15, beginning in 2026. (Des Moines Register)

IOWA FARM BUREAU PRESIDENT ENCOURAGED BY BIOFUELS MOMENTUM (Brownfield Ag News)

Gov. Reynolds to sign E-15 requirement bill into law (KCCI; includes VIDEOS)

Gov. Kim Reynolds signs biofuels bill into law (Siouxland Proud)

New Iowa law requires more ethanol in state’s gasoline (Associated Press)

New Iowa law requires more ethanol in state’s gas (Times Republican)

Another big win for ethanol in Iowa. When does it ever lose? (The Gazette)

Excerpt from Associated Press: Earlier versions of the bill raised concerns it would force small gas stations to close because of the cost of installing new tanks, pipes and pumps. To quell those concerns, the bill includes exemptions for existing gas stations selling less than 300,000 gallons of fuel a year with no plans to replace its storage tanks, and some stations with old storage tanks also can get waivers.

The bill passed 42-3 in the Senate and 81-13 in the House.

The state will award up to $5 million a year in grants to help gas station owners upgrade equipment to handle E15.

In Minnesota, another top corn-growing states, lawmakers also have considered a mandatory E15 measure but haven’t approved a measure. READ MORE

Excerpt from Des Moines Register: Speaking to reporters Tuesday, Reynolds praised the bipartisan vote. She is expected to sign the bill, which is one of her legislative priorities.

"It’s a lower cost of fuel," she said. "As we're seeing skyrocketing gas prices — check the price at the pump. It's a good deal. And it's environmentally friendly. So it checks about every box that we're looking for."

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House lawmakers passed a version of the bill in early February, but the measure had languished in the Iowa Senate until this week. The final version of the legislation includes a more robust waiver process that senators estimate will allow hundreds of Iowa gas stations to opt out.

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An annual report published by the Iowa Department of Revenue found sales of E15 and higher ethanol blends accounted for about 6.1% of all gasoline sales in the state in 2021, or about 87 million gallons. Just over 300 gas stations in Iowa reported selling E15 in 2021. That represents about 17% of the 1,744 gas stations that reported their sales to the state last year, although the department report estimated there could be more than 3,000 potential retail fuel stations in Iowa.

There are several ways for retailers to receive exemptions from the E15 requirement. Gas stations without compatible equipment are exempted, and a retailer can either submit a waiver describing why its equipment can't support the higher ethanol blend or hire someone to inspect its facility and certify that it can't meet the requirement.

The Senate changed the bill this week to add another exemption. The bill now allows any gas station that sells less than 300,000 gallons of gas per year to receive a waiver from the E15 requirement if the station's owner owns 10 or fewer gas stations and the station hasn't previously sold E15.

There were 575 gas stations in Iowa that sold less than 300,000 gallons of gas in 2020, according to data provided by Senate Republican staff, accounting for about 5.8% of the gasoline sold in the state that year.

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Three senators voted no on the bill: Sens. Joe Bolkcom, D-Iowa City, Jim Carlin, R-Sioux City, and Dennis Guth, R-Klemme. The two Republicans spoke during floor debate to say they oppose the government mandating the types of fuel gas stations have to sell.

"I do support E15 in every way that I can, but I don’t think it’s the government’s job to use their big club to make things happen," Guth said.

Every Senate Democrat except Bolkcom supported the legislation.

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The Senate version also changed the legislation to provide a more generous cost-sharing for smaller gas stations that want to upgrade their equipment using the state's Renewable Fuel Infrastructure Program.

For stations that sell less than 140,000 gallons of gas each year, the state will pick up 90% of the cost, and the retailer will pay 10%. For those that sell between 140,000 and 450,000, it would be a 75%-25% split. For any gas stations that sell more than that, the cost is split 70%-30%, as it is under the current program.

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Monte Shaw, executive director of the Iowa Renewable Fuels Association, called the bill "a victory for Iowa consumers" in a statement Tuesday.

"Every person in Iowa deserves the choice of higher blends like E15 and B20," he said. "It’s also a victory for Iowa leadership as this legislation is already being looked at by other states as a model for how to promote access to lower-cost, cleaner-burning fuels."

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Reynolds has said she is working with other Midwestern governors to find a way for E15 to be offered year-round permanently.

"I'm working with a big cohort of Midwestern states," she said. "I actually hope to send the final request to the administration this week. So we're really close." READ MORE

Excerpt from Siouxland Proud: Governor Kim Reynolds signed a new biofuels requirement into law Tuesday morning.

The bill approved this session requires most gas stations to carry the higher 15-percent ethanol blend by 2026. Small stations that sell less than 300,000 gallons of fuel per year can get an exemption.

The bill won overwhelming bipartisan support during the session.

“I am just so proud that when Iowa’s ethanol industry and Iowa’s farmers needed support, House Democrats were here for them,” said Rep. Jennifer Konfrst (D).

Rep. Lee Hein (R) said, “Here in Iowa we are the number one producer of ethanol in the United States, we need to stand up and support the product.”

The Iowa Renewable Fuels Association (IRFA), Iowa Soybean Association (ISA), and Iowa Biodiesel Board (IBB) all applauded the signing of the bill, with IRFA Executive Director Monte Shaw said Reynolds made history with her signature.

“The Iowa Biofuels Access bill is nation-leading policy that will greatly expand consumers’ ability to find lower-cost biofuels at pumps across the state,” Shaw said. “Iowa is now the first state to have an E15 program and the first state to incentivize B30. Iowa is now truly the leader in both biofuels production and biofuels policy. This would not have happened had Governor Kim Reynolds not introduced the bill and made it a top priority this legislative session. At a time of record-breaking fuel prices, the Governor’s Biofuels Access bill will provide relief for consumers and long-term markets for farmers. It is not exaggerating to say that the Iowa Biofuels Access bill is the most important piece of biofuels legislation ever enacted in Iowa. IRFA deeply appreciates the leadership of Governor Reynolds and her commitment to empowering families and farmers.” READ MORE