A bill to require E-15 at Iowa gas stations is advancing in the Senate

Gov. Kim Reynolds’ proposal to require Iowa fuel stations to promote gas with greater blends of ethanol superior Monday after being stalled within the Senate for months.

The governor’s lobbyist, Molly Severn, mentioned the invoice will assist reinforce Iowa’s financial system.

“This invoice is the results of important compromise from everybody alongside the gas provide chain, from farmers to gas retailers,” Severn mentioned. “If we’re to stay the nationwide chief in agriculture and renewable gas manufacturing, we should ship a robust message in opposition to the fixed uncertainty that we have now confronted from the federal authorities and the EPA.”

Greater than half of the corn grown in Iowa goes to ethanol manufacturing. President Joe Biden just lately introduced he would enable using E-15 by this summer time when it is usually not allowed, and Severn mentioned Reynolds is working to make that change everlasting.

Below the invoice within the Iowa Legislature, fuel stations that open after Jan. 1, 2023, must promote E-15, fuel blended with at the very least 15 % ethanol, from at the very least half of their dispensers. Current fuel stations with suitable infrastructure must promote E-15 from at the very least one dispenser by 2026. If a fuel station upgrades its underground infrastructure, it must supply E-15 from at the very least 50 % of its dispensers.

The Iowa Home handed the invoice in early February. That model included two completely different waivers fuel stations may use to get out of the E-15 mandate. One would apply to stations which have particular underground infrastructure that’s outdated and incompatible with E-15. The opposite waiver would go to stations that get an inspection to certify it might value greater than a specific amount to improve their gear.

The Senate Methods and Means Committee amended the invoice Monday so as to add a 3rd alternative for fuel stations to keep away from the E-15 mandate. Fuel stations that promote lower than 300,000 gallons of fuel per yr would be capable of get a waiver.

“We’re actually making an attempt to assist out these small retailers right here within the state understanding that these assist lots of our rural communities,” mentioned Sen. Dan Dawson, R-Council Bluffs. “And there’s a distinction between a high-volume station having the capital to make investments…versus a small station which may not have as a lot capital.”

The Senate invoice would additionally give extra monetary help to small fuel stations that need to improve their gear to have the ability to promote E-15.

The committee handed the invoice with a voice vote, so it’s not clear who supported the invoice and who didn’t.

Sen. Joe Bolkcom, D-Iowa Metropolis, was the one senator who requested to be recorded as voting in opposition to the invoice.

“My considerations are in regards to the mandate—the requirement that state authorities goes to inform enterprise house owners that they must promote a selected product,” he mentioned.

Bolkcom mentioned it’s ironic that Republican leaders refuse to enact mandates for farmers to assist enhance water high quality, however they’re keen to concern an E-15 mandate to fuel stations.