The Right to Blend

Joanna Schroeder

Iowa Governor Terry Branstad signed into law last week legislation that preserves an Iowa petroleum marketer’s right to blend with Iowa manufactured ethanol and biodiesel. This, according to Dawn Carlson, president of the Petroleum Marketers and Convenience Stores of Iowa, helps retailers sell competitively priced fuel and preserves Iowa jobs.
“We celebrate the signing of Iowa’s “Right to Blend Law”, Carlson. “This legislation allows petroleum marketers to continue to offer locally grown biofuels to Iowans.”

Biodiesel-Pump-Photo-Joanna-Schroeder-e1364839994362This 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, Governor Branstad praised the state’s petroleum marketers for their efforts to offer competitively priced fuel and preserve Iowa jobs. The Governor and Lt. Governor Kim Reynolds were thanked for their support of the law.

According to fuel pricing data, 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.

Carlson says 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.

Biodiesel, biofuels, Ethanol, Legislation