Iowa

POPULATION (2015): 3,123,899

REGISTERED CARS & LIGHT TRUCKS: 3,400,439

ANNUAL GAS CONSUMPTION (2014): 1.7 Billion GPY

TOTAL RETAIL STATIONS: 1,802

Maximum E85 use:300 Million GPY
FFVs in use:484,665
E85 stations:210
Flex Station implied demand:+47
Maximum E15 use:1.3 Billion GPY
EPA approved E15 vehicles:2,720,351
E15 Station implied demand:+1,442

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

9.0 psi RVP gasoline is sold on a retail level from June 1 until September 15.

Contact information for key state regulatory agencies

Department of Natural Resources, 515-715-8200

State incentives

Ethanol Blend Retailer Tax Credit
The Ethanol Promotion Tax Credit is available to any fuel retailer for up to $0.08 per gallon of pure ethanol blended into gasoline, as long as the retailer sells a certain percentage of renewable fuels (ethanol and biodiesel) as part of their total motor fuel sales on a company-wide or a site-by-site basis. Retailers must meet the following annual renewable fuel goals to be eligible for the credit:

iowa_chart

For retailers within 2% of meeting these goals, the tax credit will be $0.06 for every gallon of pure ethanol blended into gasoline sold. For retailers within 4% of meeting these goals, the tax credit will be $0.04 for every gallon of pure ethanol sold. The governor may adjust the percentages if certain flexible fuel vehicle registration targets are not met or if there is a shortage of biofuel feedstock. The tax credit expires December 31, 2020. (S.F. 2309)

Mid-level Ethanol Blend Retailer Tax Credit
Retail stations dispensing mid-level blends of ethanol in gasoline between 15% (E15) up to 69% (E69) for use in motor vehicles may be eligible for a tax credit. Credit amounts vary by date: September 16 through May 31 the credit is equal to $0.03 per gallon and June 1 through September 15 the credit is equal to $0.10 per gallon. The tax credit expires December 31, 2024. Eligible taxpayers may also claim the Ethanol Blend Retailer Tax Credit for the same ethanol gallons and tax year. (S.F. 2309)

E85 Retailer Tax Credit
Retail stations dispensing gasoline fuel blends of 70% ethanol (E70) to 85% ethanol (E85) for use in motor vehicles may be eligible for a tax credit in the amount of $0.16 per gallon sold. The tax credit expires after December 31, 2024. Eligible taxpayers may also claim the Ethanol Blend Retailer Tax Credit for the same ethanol gallons and tax year. (S.F. 2309)
Point of Contact for above programs
Amy Harris
Administrator, Research and Analysis Division
Iowa Department of Revenue
Phone: 515-281-0196
amy.harris@iowa.gov

Biofuel Infrastructure Grants
The Renewable Fuel Infrastructure Program provides financial assistance to qualified E85 and biodiesel retailers. Cost-share grants are available to upgrade or install new E85 or biodiesel infrastructure. Three-year cost-share grants are available for up to 50% of the total cost of the total project, up to $30,000, and five-year cost-share grants are available for up to 70% of the total cost of the project, up to $50,000. Biodiesel distributors may apply for cost-share grants for infrastructure upgrades and installations at biodiesel terminal facilities. Facilities blending or dispensing blends ranging from 2% biodiesel (B2) to 98% biodiesel (B98) are eligible for up to 50% of the total project, up to $50,000. Facilities blending or dispensing B99 or B100 are eligible for up to 50% of the total project, up to $100,000.

The Renewable Fuels Infrastructure Board receives administrative support from staff within the Iowa Department of Agriculture and Land Stewardship and the 11-member board has authority to determine the eligibility of applicants. For more information, refer to the Renewable Fuel Infrastructure Program website.
(S.F. 2309)
Point of Contact
Harold Hommes
Marketing and Renewable Fuels Program
Iowa Department of Agriculture and Land Stewardship
Phone: 515-242-6237
Fax: 515-281-8025
harold.hommes@iowaagriculture.gov
http://www.iowaagriculture.gov/

E85 Fuel Exclusivity Contract Regulations
Any motor fuel franchise contract entered into or renewed on or after May 30, 2006, must allow for the delivery of E85 at any time requested by the motor fuel dealer or allow the dealer to purchase E85 from another source. If a contract was already in effect on May 30, 2006, and does not have an expiration date, the franchisor must provide for the delivery of E85 at the request of the franchisee or allow the franchisee to purchase those volumes of E85 from another source. (S.F. 2309)

Renewable Fuel Labeling Requirement
Biodiesel, biobutanol, and ethanol blend dispensers must be affixed with decals identifying the type of fuel blend. If fuel blends containing more than 10% ethanol are being dispensed, the decal must include the statement “For Flexible Fuel Vehicles Only.” The Iowa Department of Agriculture and Land Stewardship (Department) may approve an application to place a decal in a special location on a pump with special lettering or colors that are clear and conspicuous to the consumer. The application must be made in writing to the Department. (S.F. 2309)

Ethanol Blend Dispenser Requirement
An ethanol retailer selling a blend of at least 9% ethanol by volume must use gasoline storage and dispensing infrastructure that the Iowa Department of Natural Resources and state fire marshal have determined is compatible with the ethanol blend being dispensed. Exceptions may apply. (S.F. 2309)

Alternative Fuel Tax
E85 is subject to the excise tax of $0.29 per gallon through June 30, 2015, and $0.293 per gallon thereafter. (Senate File 257, 2015, and Iowa Code 452A.2 and 452A.86)

Federal incentives

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

Ethanol plant direct E85/ethanol sales

Current ACE members that offer E85/direct ethanol sales in this state include:

Absolute Energy (St. Ansgar)
E85:
Emily Black, Refined Products Marketing Group (RPMG),
Email: eblack@rpmgllc.com; Phone: 952-465-3239

Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Golden Grain Energy (Mason City)
Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Homeland Energy Solutions (Lawler)
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Little Sioux Corn Processors (Marcus)
E85:
Emily Black, Refined Products Marketing Group (RPMG),
Email: eblack@rpmgllc.com; Phone: 952-465-3239

Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Quad County Corn Processors (Galva)
Matt Carter - EcoEnergy,
Phone: 615-786-0404

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales

E15/Flex Fuel Profit Estimate
line
Iowa
AVG STATION (77,100 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 14,200 $2,400
New Customers/Mo:+1,583 
Additional Merch. Margin from above:$4,600
RINs not applied to reduce price:$690
line
TOTAL NEW PROFIT/MO  $7,690
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:34,000$5,600
New Customers/Mo:+3,755 
Additional Merch. Margin from above:$11,000
RINs not applied to reduce price:$1,900
line
TOTAL NEW PROFIT/MO  $18,500

Want to see what E15/Flex fuels could do for your operation?

Try out the E15/Flex fuel profit Estimator
A Roadmap for Ethanol cover

a roadmap for ethanol

You’re thinking about adding or switching to a new fuel grade on your product slate, and you’ve considered premium and diesel, because those are the fuels all station owners consider. But today, the market is different, and you’re curious about what E15, E85, and other flex fuels could do for your business. Good move.

Download the Full Guide