Retailer Says Insurance Requirement A Snag In E15 Pump Conversion

Statewide Iowa — A regulatory change touted as a less expensive way for retailers to switch to selling gas with a 15 percent blend of ethanol is a key part of the debate over the governor’s proposed ethanol mandate.

Early this year, Governor Kim Reynolds called for a state law requiring all Iowa gas stations to sell gas with a 15 percent ethanol blend by 2026. The proposal stalled this spring, but supporters hope to revive it. Monte Shaw is executive director of the Iowa Renewable Fuels Association. Shaw says his group does NOT support a mandate that would force retailers to crack into concrete and replace the underground fuel tank that leads to pumps above.

And Shaw says already existing regulations from the state fire marshal allow pumps dispensing gas with 10 percent ethanol to switch to E-15. Mark Cobb of Brighton owns nine gas stations in eastern Iowa and is installing new pumps to offer E-15 to his customers at all locations. He says it costs far more than the 10-thousand dollars Shaw mentioned.

Cobb, who is an investor in a biodiesel plant, too, says he’s not opposed to efforts to promote the sale of biofuels.

And Cobb says premium gasoline that has NO ethanol in it must be used in some vehicles on the road today in order to maintain the warranty. Iowa Corn Promotion Board vice president Kelly Niewenhaus, a farmer from Primghar, says he’s optimistic the two sides can find common ground in 2022.

The three men made their comments on this weekend’s “Iowa Press” program on Iowa PBS. Three months ago, Governor Reynolds said she’d ask representatives of ag groups and gasoline retailers to meet this summer and fall, to try to come up with a compromise Iowa Renewable Fuels Standard. There’s been no public announcement that a working group has been formed or is meeting.

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