The Iowa House has passed a measure that will boost Iowa’s biofuel industry by mandating gas stations to offer fuel with greater ethanol mixes unless they seek an exemption due to insufficient equipment, Biodiesel Magazine reported.
On Wednesday, the measure passed 81 to 10 with nine members of the House missing. It now goes to the Senate for consideration.
The law on biofuel industry mandates existing gas stations with appropriate equipment to supply E15 – a gasoline blend containing 15% ethanol – from at least one pump by 2026.
Stations must comply with the new regulation if they can update their equipment using state-funded incentives within specific cost constraints. Any new gas stations or those that install new tanks, pumps, and hoses must provide E15 from at least half of their available pumps beginning in January of next year.
The measure also increases funds for the state’s Renewable Fuels Infrastructure Program by doubling it to $10 million each year for the next five years. The measure mandates that any new or improved gasoline infrastructure be E85 or B20 compliant. By 2026, all merchants with appropriate infrastructure would be expected to provide E15.
The new E15 promotional tax credit will be fixed at 9 cents a gallon year-round until 2025, according to Growth Energy, which applauded the bill’s passing.