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Gov Reynolds Seeks to Impose Statewide Fuel Mandate


On Monday, February 8, House Study Bill 185 was proposed on behalf of Iowa Governor Kim Reynolds. Couched as an Iowa fuel standard by its supporters ( Lobbyist Declarations Available Here ), the biofuel mandate proposed by Governor Reynolds would mandate the sale of E10 at all but one fueling position per retail motor fuel site through December 31, 2024. Beginning January 1, 2025 E15 would be mandated for sale at all but one fueling position per retail motor fuel site. Upon enactment of the proposed mandate, retail motor fuel sites will be limited to one dispenser offering a gasoline product below the mandated blend level.

Governor Reynolds proposed mandate on biodiesel fuel mirrors her proposed mandate on ethanol. If the mandate proposed by Governor Reynolds is passed by lawmakers, effective upon the enactment of the legislation a minimum B11 blend will be required to be sold at all but one fueling position per retail motor fuel site. Beginning April 15, 2024, B20 will be required to be sold at all but one fueling position per retail motor fuel site. The Governor’s proposed mandate accounts for the seasonal storage, handling, and use challenges associated with biodiesel by moving the minimum blend requirement down from B11 and B20 respectively to B5 during the time period beginning October 1 and ending April 14 during each individual calendar year.

The mandate proposed by Governor Reynolds in cooperation with the Iowa Farm Bureau, Iowa Corn Growers Association, Iowa Soybean Association, the Iowa Biodiesel Board, and the Iowa Renewable Fuels Association comes at a time when the small business owners in the retail fuel industry are struggling through the effects of an unprecedented pandemic. In addition to the obvious shortcomings of government mandates like the elimination of consumer choice,  elimination of market competition, and increased cost of goods, Iowa fuel retailers are being asked to invest $800 million into their gasoline storage and dispensing infrastructure by January 1, 2025 to accommodate Governor Reynolds E15 mandate or risk having their business closed by the Iowa Department of Agriculture and Land Stewardship Weights and Measures Bureau. When costs associated with the Governor’s biodiesel mandate are included, FUELIowa estimates the wholesale and retail fuel industry will be asked to invest well over $1 billion into their businesses by January 1, 2025 to comply with the mandate.

FUELIowa remains a steadfast supporter of providing biofuel blended fuel products to our customers. However, we will be vigorous in our opposition to the mandate proposed by Governor Reynolds on our small business owners and our customers. FUELIowa will be providing a more detailed description of the proposed legislation in the coming days. Members interested in learning more are encouraged to contact John Maynes in the FUELIowa office (john@fueliowa.com; 515-421-4043).

Fuel State Legislation

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