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Iowa Gov. Kim Reynolds signs biofuel bill into law

Iowa Gov. Kim Reynolds signs biofuel bill into law

The bill requires gas stations to sell fuel with at least 15 percent ethanol

By Diego Flammini
Staff Writer

A piece of legislation designed to ease gas prices and support producers is now law in Iowa.

Gov. Kim Reynolds signed HF2128, the Biofuels Bill, into law on May 17 while visiting a farm near Prairie City.

“I’ve never been prouder than I am today to be the Governor of the number one ethanol and biodiesel-producing state in the country,” she said in a statement. “Iowa’s biofuel production powers our economy and fuels the world, and this historic bill sets the stage for the single largest expansion of biofuels in our state’s history. We’re sending a message that we can’t be ignored: America’s energy is growing right here in Iowa’s fields.”

The bill sets out standards for fuel retailers who must offer E15 to customers, beginning in 2026.

If the gas station has more than one pump, for example, half of the pumps at the gas station must have E15.

The bill also includes incentives for stations selling B-20 biodiesel.

Gas stations selling fewer than 300,000 gallons of gasoline per year or have older equipment can apply for waivers from the legislation.

Reynolds signing the bill received support from the ag industry and renewable fuels sector.

The national average price of gas on May 18 in the U.S. is $4.56 per gallon, the American Automobile Association said. In Iowa the average price is $4.12.

Governor Reynolds signing this bill into law will help bring fuel prices down, said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

“At a time of record-breaking fuel prices, the Governor’s Biofuels Access bill will provide relief for consumers and long-term markets for farmers. It is not exaggerating to say that the Iowa Biofuels Access bill is the most important piece of biofuels legislation ever enacted in Iowa,” he said in a statement.

The Iowa Corn Growers Association also support the bill.

“It expands the availability of E15 to consumers, saving them an average of 10 cents per gallon, and creates additional markets for Iowa corn farmers. It’s a win-win for Iowa,” said Lance Lillibridge, a farmer and president of the ICGA.”

Only about 17 percent of Iowa gas stations provide customers with E15.

The Iowa Department of Revenue identified 2,580 retail locations in 2020, meaning only about 438 offered E15.

This new bill will help bring that number closer to 70 percent of fuel stations (1,806) by 2024.

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