DES MOINES -- Gov. Kim Reynolds is proposing Iowa’s very own ethanol mandate.
The proposal has drawn unusual lines in the lobbying sand, with renewable fuels groups pitted against gas stations and at least one conservative, free market-minded advocacy organization.
Reynolds’ proposal, which she introduced in legislation on Monday, is similar in spirit to the federal ethanol mandate, which requires a certain number of gallons of corn-based ethanol be blended into the nation’s fuel supply. Reynolds’ proposal would require all gasoline sold in Iowa to contain at least 10% ethanol, with an option for the governor to raise that to 15% in four years.
The proposal also shifts existing tax credits for ethanol and other biofuels to only those with blends higher than the new baseline. That move is expected to reduce state spending, and some of those savings would be dedicated to a fund that retailers could access to help pay for equipment upgrades they would need to accommodate the new, higher-blend ethanol fuels.
https://siouxcityjournal.com/news/state-and-regional/govt-and-politics/reynolds-proposes-state-ethanol-mandate-drawing-unusual-political-battle-lines/article_04dd35b6-ff9f-51be-b619-1c8b8fe1e888.html?utm_medium=social&utm_source=facebook_Sioux_City_Journal&fbclid=IwAR3dJb3gahmcZDc8fJFpWOmV9NtIfl_iGHBddwWsJznJb6A_qyqH-D_cryQReynolds’ proposed legislation would:
• require all gasoline in the state to include 10% ethanol, with exceptions for one pump per retailer for ethanol-free gasoline. In 2025, the governor would have the option to bump the baseline requirement to 15% ethanol.
• require all diesel fuel in the state to contain 5% biodiesel fuel from October through March and 11% from April through September. In 2024, the April through September blend requirement would increase to 20%.
• shift existing tax credits to only blends above the new minimum standards.
• require any new equipment installed in the state to be compliant with 15% ethanol or 20% biodiesel usage.
