Iowa governor signs 'Right to Blend' bill into law

By Petroleum Marketers and Convenience Stores of Iowa | July 09, 2013

Consumers in Iowa benefit from competitively priced fuel and legislation signed by Gov. Terry Branstad will have a positive impact at the pump. The new law, effective as of July 1, preserves an Iowa petroleum marketer's right to blend with Iowa manufactured ethanol and biodiesel thereby maintaining competitively priced fuel and preserving Iowa jobs. 

"We celebrate the signing of Iowa’s “Right to Blend Law”, said Dawn Carlson, president of the Petroleum Marketers and Convenience Stores of Iowa. "This legislation allows petroleum marketers to continue to offer locally grown biofuels to Iowans." 

This legislation was requested by the petroleum marketers, who have supported ethanol and biodiesel blending for more than 30 years in Iowa. In a special ceremony honoring the new law, Branstad praised the state’s petroleum marketers for their efforts to offer competitively priced fuel and preserve Iowa jobs. The governor and Lt. Gov. Kim Reynolds were thanked for their support of the law. 

Fuel pricing data already exists proving that this legislation helps Iowa businesses to buy fuel more competitively. Having the ability to blend gasoline and diesel with local ethanol or biodiesel enhances competitive forces that drive prices lower at the terminals. 

With passage of the Right to Blend law, local retailers have the freedom to fully accommodate the market demands for biofuels. Oil company contracts can not prevent Iowa marketers from blending with renewable fuel produced in Iowa or dictate which blends of biofuels local marketers can sell.

Additionally, there are several other provisions in the law, such as extending the lower excise tax rate on ethanol blended gasoline, exempting from fire marshal registration certain sized farm fuel tanks which will help expand farm storage when supplies are tight. 

With more competitive priced fuel, it could also be argued that this helps Iowa roads. Every gallon of fuel sold in Iowa collects nearly 25 cents of tax to pay for good roads. 

Petroleum marketers in Iowa are leading the way in renewable fuels blending, marketing, education and practical experience that has helped encourage blending in other states. Iowa petroleum marketers are invested in the future of homegrown biofuels.