Magellan Midstream Partners, L.P. To Begin Offering E15 at its Iowa Terminals

Beginning September 16, Magellan Midstream Partners, L.P. began offering E15 at its Iowa terminal locations. Magellan Midstream Partners, L.P. operates or supplies refined product terminals in Bettendorf, Dubuque, Des Moines, Fort Dodge, Iowa City, Mason City, Milford, Sioux City, and Waterloo.

The growth of E15 in Iowa has been accelerated by commitments from Kwik Star, Casey’s, Kum & Go, and many independent PMCI members that have made commitments to market E15. This announcement by Magellan is likely to create even more interest in E15. Currently, almost all E15 marketed in the state is done using a blender dispenser where E10 and E85 are mixed to create an E15 blend. With E15 now being offered pre-blended at Magellan terminals, petroleum marketers will have direct access to the product without a need for a blender dispenser or additional tank storage.

According to Magellan, their E15 blending service will be offered from September 16 through April 30 each year. May 1 marks the beginning of EPA’s regulatory control period which prohibits refiners and suppliers from offering gasoline with a Reid Vapor Pressure (RVP) that exceeds the applicable standards set forth by the EPA. Gasoline retailers must comply with the regulation beginning June 1. For gasoline supplied to Iowa, EPA sets the RVP limit at 9.0psi for gasoline and gasoline-ethanol blends containing E0-E8, and E11-E15. Gasoline containing between 9-10 percent ethanol is granted a 1.0psi waiver during EPA’s high ozone season which allows E10 to continue to be sold during this time.

As a reminder to PMCI members, prior to introducing gasoline-ethanol blends that exceed 10 percent into your UST system, you must first meet federal and state equipment compatibility assessment requirements on your UST system. The Iowa DNR equipment compatibility checklist, Form 542-1336, can be found here. The form is required to be completed with the assistance of an Iowa licensed installer. PMCI members are also reminded that a 30-day notice is required to be provided to the Iowa DNR and your financial responsibility provider prior to introducing higher-blends of ethanol into an existing UST system.