JOHNSTON, Iowa – Linn Coop
Oil Company claims that Big Oil has refused to allow their stations to sell
homegrown E15 in Iowa. “Here at Linn Coop, we want to sell homegrown fuels and
my customers want to take advantage of clean-burning, low-cost fuels like E15,
but refiners are using their monopoly to keep me from offering E15 year-round,”
said Jim Becthold, Linn Coop Oil Company service manager, in a press release.
However, that’s not the
whole story. According to Dawn Carlson, CAE and president of the Petroleum
Marketers and Convenience Stores of Iowa, “Iowa petroleum marketers can,
in fact, sell E15 today to fuel flex-fuel vehicles (FFVs). Effective June 1
each year through September 15 each year, Iowa marketers are allowed to sell
E15 to flex-fuel vehicles only. Federal law prohibits the sale of ethanol
blended gasoline above a 10% blend (E10) to non-FFVs during this time period.”
Carlson pointed out to NACS Daily that the fuel that is
supplied to Iowa in the summer months is in full compliance with 40 CFR 80.27,
which sets forth the Controls and Prohibitions on Gasoline Volatility. “Lost in
the sensationalism is the fact that Congress and the Environmental Protection
Association had the opportunity to extend the 1psi summertime waiver that
exists for E10 to E15 and they chose not to. According to the Iowa Department
of Transportation, there are 86,000 FFVs registered in the state of Iowa which
could be using E15 to E85; most of these vehicles are owned by the government.”
“With the price of gas
surging in the Midwest, Iowans should have as many choices at the pump as
possible. With their actions, oil companies are essentially restricting the
sale of E15, a fuel option that helps reduce the price of gasoline. That’s why
they should immediately reverse course and agree to ship blendstock that allows
the sale of E15 to more drivers,” said U.S. Rep. Bruce Braley (D-IA) at a press
conference this week with Becthold.
“As a member of the House
Energy and Commerce Committee that has jurisdiction over the federal Renewable
Fuels Standard (RFS), Braley should understand that it is Congress’s actions
that have restricted petroleum marketers to selling E15 only to FFVs during the
summer months,” said Carlson.
“Iowa petroleum marketers
have invested tens of millions of dollars in building the infrastructure to
offer renewable fuels, even funding infrastructure grants with the industry’s
petroleum underground storage tank cleanup fund managed by the state,” said
Carlson. “We are confident as consumers ask for higher blends, we will be ready
to offer it and the oil companies will provide it — that is how the free market
works in America.”