Iowa seeks to make E10 statewide law

Written by Administrator

(from an article posted recently at www.kimt.com)

The Iowa Renewable Fuels Association wants Iowa to increase its use of ethanol in motor fuels.
Association vice president Monte Shaw notes the percentage of fuel sold in Iowa with ethanol blended in has been stuck around 75 percent. He says the percentage of ethanol-blended gasoline now stands at 80 percent in the rest of the nation.

To increase Iowa's consumption, Shaw says the association will ask the Legislature to pass a bill requiring motor gasoline in the state carry at least 10 percent ethanol.

Shaw estimates with a state mandate, ethanol use in Iowa would increase from 100 million gallons annually to about 140 million gallons.

Republican Rep. Annette Sweeney of Alden indicates there is interest in the Legislature in the ethanol producers' proposal.
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Information from: The Des Moines Register, http://www.desmoinesregister.com

Our Take:
This move would support the entire output of a moderately sized ethanol plant. Though Iowa is host to more ethanol plants than any other state (38 plant locations) and has the highest rate of ethanol production in the country (3.28 billion gallons per year), it still does not have an ethanol minimum requirement for gasoline within its borders. It’s been more than a decade since E10 was required across the entire state of Minnesota. This policy has fostered an industry that supports more than 10,000 jobs and produces more than $5 billion in annual economic impact in Minnesota, from about 1 billion gallons of annual production. It is time that Iowa joined us.

Ethanol in the News

American Lung Association: Minnesota Uses More E85 in State-Owned Vehicles

(News release posted by PR Newswire on Manufacturing.Net - July 29, 2010)

Minnesota's state agencies continue to make steady progress in their effort to reduce the amount of petroleum consumed by publicly-owned vehicles. During the first two quarters of the year, state agencies used 437,063 gallons of E85, a cleaner burning fuel consisting of up to 85 percent ethanol and 15 percent gasoline. That represents a nearly 25 percent increase over the amount used during the same period in 2009, according to Tim Morse, chair of the SmartFleet Committee, a group tasked with helping agencies comply with Executive Order 04-10, issued by Gov. Tim Pawlenty.

(News release by Margaret Hart posted on Minnesota Department of Agriculture's website)

Minnesota's ethanol industry generated more than $2.5 billion in economic activity in 2009 and supported more than 6,800 jobs according to a new report from the Minnesota Department of Agriculture (MDA). Ethanol production in the state increased to 862 million gallons in 2009 from 550 million gallons five years ago. The MDA report estimates the industry is on tap to increase production to 1.1 billion gallons this year with a projected economic impact of $3.1 billion and approximately 1,500 additional jobs.