Iowa Awards $4 Million in E15 Grants

Cindy Zimmerman

The Iowa Renewable Fuels Infrastructure Program (RFIP) last week awarded over $4 million in grants to add E15 (15% ethanol fuel) to 86 retail sites throughout the state.

Under Iowa’s E15 Access Standard adopted in 2022, retailers have until January 1, 2026 to offer E15 for sale to Iowa motorists. Earlier this year, the Iowa Legislature streamlined E15 requirements and increased the RFIP grant size.

“The move to E15 as the ‘new normal’ continues to accelerate,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “This is great news for consumers who can save 15-25 cents per gallon with E15 and for Iowa farmers who need expended ethanol markets to bolster prices. We’re also seeing more locations simply swap out E10 for E15. That’s a trend that we believe will continue. Today’s grants were the first under the new rules and we saw a very robust response.”

New legislation, signed into law in May 2024, allows retailers to install fuel dispensers compatible with the fuel being offered, in this case E15, instead of the more strict and expensive E85 standard during the transition period through December 31, 2025. Starting January 1, 2026 through June 30, 2030, new dispensers must be compatible with E40 blends. Beginning July 1, 2030, the dispenser requirement reverts back to E85 compatibility.

“There is no reason for retailers to miss the 2026 deadline for offering E15,” stated Shaw. “Rules have been streamlined. Grant sizes and funding have increased. Year-round E15 has been approved in Iowa. Every Iowa motorist deserves the cost-saving option of E15.”

In addition to E15 grants, $1.75 million was also awarded to 49 retail fuel sites to add biodiesel blends of at least a B11 blend (11% biodiesel) during the summer and at least a B5 blend during the winter months.

Biodiesel, Ethanol, Ethanol News, Iowa RFA