Iowa Business Interests Face Off Over Proposed Ethanol Mandate


Via Flickr

Thomas Robinson | February 16th, 2021

Gov. Kim Reynolds has proposed a new ethanol fuel mandate which would increase the sale of renewable fuels at Iowa gas stations and shift existing tax credits to support higher percentage renewable fuels.

The proposed rule, House Study Bill 185, would mandate that all gasoline sold in Iowa must include 10% ethanol and that all diesel fuel must include 5-11% biodiesel depending on the time of year.  Gas stations would also be allowed only one non-renewable pump, and, would also be required to install new equipment that could handle higher percentages of biofuels.  The potential equipment upgrade has pitted fuel business interests against the governor as the required upgrades could potentially cost up to $1 billion dollars.

Fuel interests in Iowa, like FUELIowa and the Iowa Motor Truck Association, warn that the proposal may increase consumer fuel costs and drive truckers to not purchase fuel in Iowa.  On the other side, biofuel interests, such as the Iowa Corn Growers Association and the Iowa Renewable Fuels Association, favor the proposal as it is projected to increase biofuel grants by around $7 million per year.  Competing interests between these two groups over a vital Iowa industry suggests that there will be heated discussions when subcommittee hearings for the bill begin on Wednesday.

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