Iowa’s Governor Calls for E10, B11 to Be Offered from All New Fuel Pumps

by O. Kay Henderson (Radio Iowa) Governor Kim Reynolds says any new fuel pumps installed in Iowa should be able to dispense gas with at least a 10 percent blend of ethanol and the governor says B11 — 11 percent biodiesel — should be the standard for diesel pumps.

Many retailers offer two, three or even four blends of fuel from one pump and this would not require that every option be a higher blend of biofuel, but it would require E10 and B11 at least be offered from newly-installed pumps.

During her online appearance this morning, Reynolds said governors in Illinois, Nebraska and South Dakota are considering similar requirements for new fuel pumps.

“Minnesota has already taken some steps to help drive higher blends and so I think collectively we have a responsibility,” Reynolds said. “We’re better together.”

Reynolds also is asking Iowa legislators to expand the state grant program for installing fuel pumps that dispense higher blends of biofuels. The program has a $3 million budget this year. Reynolds suggests it should be $10 million next year. READ MORE

Excerpt from Iowa Capital Dispatch: An Iowa House committee approved a retooled version of Gov. Kim Reynolds’ controversial biofuels mandate proposal on Wednesday.

Fuel retailers rallied against Reynolds’ initial proposal, arguing that making the changes required under the bill could cost gas stations up to $1 billion in upgrades. CEO Ronald Langston of FUELIowa said his group was not consulted for the legislation, whereas agricultural groups had more sway.

“We don’t tell them what kind of corn and soybeans to plant,” Langston said of the agricultural interests pushing the bill. “Yet, in our case they are telling us what kind of fuel we will sell and how we are going to label our pumps.”

The House Ways and Means Committee on Wednesday moved an amendment to the bill that strikes the entirety of Reynolds’s bill in favor of a 37-page proposal that softens some of the governor’s initial expectations.

The amendment would still require fuel retailers to phase out gasoline and prioritize biofuels.

Immediately on the passage of the bill, gas pumps would be required to have a “special-use label” for fuel without ethanol, known as E-0. By 2028, E-10 gas — that’s gasoline with 10% ethanol — would also require a special-use label, and all gas stations that sell E-0 would also need to offer E-15, a 15% ethanol blend.

The amended bill would also require diesel retailers to transition toward biofuels. The bill would immediately mandate gas stations to sell diesel with at least 11% biodiesel — B11 — from April to November. In the winter, there would be no mandatory minimum for biodiesel.

The amendment also lays out requirements for state vehicles to be biofuel-compatible and reporting schedules to track the progress of biofuel adoption. There would also be new tax credits for retailers that sell biofuels and incentives for building infrastructure that can handle up to E-85 and B-20 fuels. READ MORE