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State biofuels mandate gets first airing in Iowa legislature’ Atlantic ethanol plant mgr. testifies during online hearing

Ag/Outdoor, News

February 17th, 2021 by Ric Hanson

(Radio Iowa) Governor Kim Reynolds says it’s time for an ethanol mandate in Iowa, to boost an industry battered by the E-P-A’s resistance to the federal ethanol production mandate.

Bills introduced in the House and Senate would require Iowa gas pumps to offer at least a 10 percent ethanol blend by 2024. There’s also a requirement that all diesel fuel sold in the state include a percentage of soybean-based biodiesel.  The plan has the support of the biofuels industry and farm groups. Iowa Farm Bureau lobbyist Matt Steinfeldt testified during an online hearing.

Gas stations, truck stops and convenience stores oppose the bill. Matt McKinney, a lobbyist for Kum N Go, says expenses for retailers to comply with the mandate will be passed along to motorists.

Dave Scott, a lobbyist for the Iowa Motor Truck Association, says semis can travel hundreds of miles before refueling and the person who pays the bills rather than the state should decide what kind of fuel to buy.

Companies that operate the pipelines and terminals oppose the bill, too, and warn facilities have to spend millions to be able to handle higher blends of biodiesel. Drew Klein, state director of Americans for Prosperity, says the bill uses regulation to manipulate the market.

Brad Wilson, general manager of Western Iowa Energy in Wall Lake, suggests the governor’s plan corrects a market imbalance.

Nick Bowdish, C-E-O of Elite Octane — an ethanol plant in Atlantic, says many petroleum marketers prevent retailers from selling ethanol and biodiesel.

The bill has cleared initial review in House AND Senate subcommittees. One senator used the phrase “fast and furious” to describe the debate between supporters and opponents of the plan.