Iowa hopes to increase E15 sales

Iowa has become the first state in the nation to require most of its gas stations to install E15 pumps. 

Iowa produces almost 20 percent of the ethanol distilled in the United States along with 18 percent of the biodiesel created nationally. The industry believes that by increasing the availability of E15, consumers will put more ethanol into their vehicles.

Governor Kim Reynolds, R – Iowa: “This is not a mandate. It is not a mandate. They have to decide if they are going to put a higher blend pump, blender pump into their station.”

Fuel retailers that sell more than 300,000 gallons of fuel will have until January of 2026 to make E15 available to its customers. Smaller retailers can apply for a waiver of the E15 pump requirement which a year ago some vendors referred to as a mandate. Those stations that sell the higher blend will receive a 9 cent per gallon State of Iowa tax credit.

The new law is also expected to increase the sale of biodiesel. Retailers will receive a 4 cent per gallon state level tax credit for each gallon of B10, or diesel with 10 percent biodiesel.

Overall, the Iowa ethanol industry hopes increased sales of E15 will result in an additional 60 million gallons of ethanol sold each year, which would represent a 1.3% increase in production.

For Market to Market, I’m Peter Tubbs.