Lawmakers Consider Mandating E-15 at All Iowa Gas Stations, Retailers Push back Saying It'll Cost Consumers Big Time

April 28, 2021

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by Rachel Droze (WeAreIowa) Those supporting the measure say the bill would be good for consumers since it'd provide lower-cost fuel at more gas stations around the state. -- A proposed bill could impact gas prices in Iowa, but there are mixed reviews on if the change would help or hurt Iowans’ bottom lines.

Some gas stations would only be allowed to sell Premium starting in 2026

First, let’s look at the bill.

In simple terms, House File 859 would change Iowa’s ethanol and biofuel standards.

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If the bill becomes law, all Iowa gas stations would have to sell E-15 fuel blends by 2026.

The legislation would provide for some exceptions to be made.

Stations without underground storage tanks compatible to hold and dispense E-15 blends would be allowed to apply for a waiver from the state.

This would indefinitely exempt them from having to sell E-15 blends, but these retailers would only be allowed to sell fuel with octane levels of 91 or above, or Premium gasoline, by 2026.

According to lobbyist declarations, both the governor’s office and the Iowa Department of Agriculture and Land Stewardship have signed on supporting this legislation.

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Monte Shaw, Executive Director of the Iowa Renewable Fuels Association, said his group is supporting this bill for several reasons.

"That's good for the farmers, it's saving consumers money, it's reducing tailpipe emissions,” Shaw said. “It's really a win, win, win."

Right now only a handful of Iowas roughly 2,400 gas stations sell E-15 fuel blends.

Shaw said not only would this provide more affordable fuel to more Iowans, but it'd also help ensure liquid fuel remains competitive as coastal states start proposing and implementing electric vehicle mandates.

Local 5 spoke to people who both supported and opposed this bill.

Both sides agreed, ethanol and biofuels will play an important role in keeping the liquid fuel industry alive.

They also agreed ethanol and biofuels are vital to Iowa’s agriculture industry.

We'll find out in just a matter of days if this bill is going to make it through the session or if it's not going to get called.

Session typically would be adjourning on April 30, but it’s expected to run long this year. READ MORE

OTHER VOICES: Ethanol mandate would be wrong move for Iowa (Sioux City Journal)

Rough road ahead for bill backed by Gov. Kim Reynolds mandating renewable fuel at Iowa pumps (Des Moines Register)

Reynolds ‘Not Giving Up’ On Bill To Expand Access To Ethanol In Iowa (KIWA Radio)

Proposed fuel mandate would cause problems for Iowa retailers and consumers -- Retailers could have their licenses revoked by the state if they are unable to afford the cost of complying (The Gazette)

Efforts underway to stop proposed E-15 fuel mandate in Iowa (KCCI)

Letter: A clear choice (Quad City Times)

Iowa Battle Lines Drawn on E15 Mandate -- Gas Retailers Oppose Iowa Bill Despite Receiving Millions in Industry Grants (DTN Progressive Farmer)

ICGA President Says Fuel Choice Coalition Off Base Attacking Ethanol Bill (WNAX; includes AUDIO)

Ethanol expansion ’a big push’ as Legislature nears end (Quad City Times)

Ag Policy Blog: The Puzzling Battle Over Ethanol in Iowa (DTN Progressive Farmer)

Iowa Biodiesel Board Disappointed in Lack of Biofuels Standard (Iowa Biodiesel Board)

Ethanol Blog: Iowa E15 Mandate Bill Left on Shelf at End of State's Legislative Session (DTN Progressive Farmer)

Excerpt from Sioux City Journal: A mandate is not the route we should take if we want to expand the growth of higher blended fuels. What does the fuel mandate bill do? It requires changing expensive fuel infrastructure, bans certain fuel types, restricts the type of fuel product disclosure shared with consumers, and overhauls entire businesses, some of which will be forced to close their doors entirely.

Selling higher blends is best accomplished with incentives and support of the marketplace. Recently released data shows that E15 sales grew 24% in Iowa last year. Compare this same trend with neighboring Minnesota, where E15 sales decreased by 4%. Minnesota has a mandate. Iowa is operating off of an incentive-based approach. READ MORE