(C) Iowa Capital Dispatch
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Lawmakers seek to delay ethanol equipment requirements for gas stations • Iowa Capital Dispatch [1]
['Jared Strong', 'More From Author', '- March']
Date: 2024-03-20
A bill that advanced Wednesday in the Iowa Senate would delay a requirement until 2030 for gas stations to install fuel dispensers that are compatible with the highest ethanol fuel blends.
A 2022 law that generally requires gas stations to sell gasoline blends that are 15% ethanol — commonly known as E15 — also says new stations and those that are upgraded must use distribution equipment that is compatible with E85.
It is meant to enable wider availability of the higher blends in future years. E10 is by far the most common fuel sold for vehicles in the United States, but state lawmakers seek to supplant it with E15 and potentially higher blends. The new E15 sales requirement is effective in 2026.
Senate Study Bill 3187 would alter the 2022 law to provide a transition period for new and upgraded fuel dispensers. Rather than require them to immediately be compatible with E85, the bill would require the dispensers to handle E15 until 2025 and then E40 until 2030. That is when the E85 requirement would be effective.
“Basically, we’re giving them time and helping control equipment costs,” said Sen. Dan Zumbach, R-Ryan, who led a subcommittee Wednesday that unanimously recommended the bill for further consideration.
The Iowa Renewable Fuels Association, which advocates for the ethanol industry, supports the bill. It believes the E40 requirement might spur dispenser manufacturers to make all their equipment compatible with E40 and thus expand the fuel’s availability nationwide.
Lobbyists for gas station owners generally supported the delayed requirements but worried about being able to acquire E40-compatible pumps. Others said a delay isn’t necessary if lawmakers increase state assistance to pay for the equipment.
The state’s Renewable Fuel Infrastructure Program will pay for 70% of the cost for ethanol blend fuel dispensers, up to $50,000. Small gas stations are eligible for more assistance.
“Our first preference would be — instead of the delay — we would implement the current bill but raise the cap from the $50,000 amount,” said Mindy Larsen-Poldberg, who represents the Iowa Corn Growers Association.
Iowa leads the nation in ethanol production, and more than half of the state’s corn crop is used to make it. State lawmakers have sought to increase the demand for ethanol to benefit the industry and farmers.
That demand is threatened by a new federal rule announced Wednesday by the U.S. Environmental Protection Agency to further reduce the emissions of new vehicles starting in 2027. A federal analysis of its potential effects predicts that electric vehicles will account for more than 70% of new passenger cars by 2050.
“I am a big supporter of electric cars and vehicles, but there’s real problems with the batteries and the effect on the environment and the infrastructure needed to do that,” said Sen. Bill Dotzler, D-Waterloo, who was part of the subcommittee. “So for a long time, we’re going to have a dual system … and I think the future is possibly E40.”
Zumbach said the bill they recommended might be amended to help alleviate the concerns of gas station owners.
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