Iowa Bill Would Prohibit Biofuel Restrictions

The state House and Senate have approved what’s being called the retailer’s “bill of rights.”

May 31, 2013

DES MOINES – The Iowa House and Senate have passed a bill that removes any restriction on blender pumps and advertising higher fuel blends, among other things, Ethanol Producer Magazine reports. 

Called the retailer’s “bill of rights,” the measure is on the governor’s desk for his signature. “We would anticipate that it is likely that he would sign the bill,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association (IRFA). 

Ethanol groups have been pushing for loosening of restrictions on how fuel retailers can sell E15, E85 and B20. The Iowa measure is based on a South Dakota law that went into effect two years ago. The Iowa bill would disallow any new supply agreements from prohibiting fuels from other distributors, limiting where higher blends could be sold, allowing more types of payment for biofuel blends besides cash, and removing advertising restrictions from biodiesel or ethanol blends.

“This legislation represents a solid step forward for higher ethanol blends, consumer choice, and the federal renewable fuel standard (RFS),” said Rick Schwarck, president of IRFA and CEO of Absolute Energy LLC.

The Petroleum Marketers and Convenience Stores of Iowa also supported the bill. “State lawmakers did great work protecting the interests of all Iowans and ensuring that we will be able to continue offering Iowa-produced fuels,” said President Dawn Carlson.

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