Record sales of ethanol-blended fuel shows its effectiveness, says Iowa governor

(The Center Square) - Sales of gasoline with 15% ethanol content grew 49.2% from 2022 to 2023, a statistic Gov. Kim Reynolds said shows the effectiveness of the biofuel.

The 2023 Retailers Fuel Gallons Annual Report from the Iowa Department of Revenue shows that 13.3% of all gas sales in 2023 were E15 blends or higher.

"Biofuels not only play a huge role in Iowa’s agriculture economy, but provide Iowans with a cheaper alternative to regular fuel. Iowa was the first state in the country to adopt an E15 standard," Reynolds said in a statement Thursday. "As the Biden Administration ignores homegrown E15 in favor of oil imported from foreign adversaries, the success of E15 in Iowa should show the Biden Administration just how effective E15 can be for consumers across the country.”

Attorney General Brenna Bird announced last month the state was ending its lawsuit against the Biden administration over year-round sales of E15 after an agreement that would allow Iowa to sell the cheaper fuel during the summer months beginning in 2025.

"I should not have to sue Biden in the first place to get him to follow the law, but I am glad that he finally did the right thing by permitting the sale of E15 gasoline during the summer months," Bird said. "This win is long overdue and goes out to the hard-working farmers and families across the state who will reap the benefits."

E15 fuel is allowed in vehicles made since 2001, according to the U.S. Department of Energy. It's available at more than 3,000 gas stations in 31 states. Taxpayers subsidize the biofuel via the Volumetric Ethanol Excise Tax Credit among other incentives.

Nearly 96% of the 1,873 Iowa gasoline retailers sold at least one ethanol blend, according to the Iowa DOR report. Twenty-two counties reported biofuel sales between 15% and 24.99%.

Overall, 2.17 billion gallons of gas were sold in Iowa in 2023, the report said.