E-15 mandate will cost Iowa gas stations and consumers

Thanks to Tom Barton for writing about the E-15 fuel mandate and its impact on Iowa businesses. As a rural Iowan and former small business owner, I understand the value of Iowa’s agricultural industry, but I also understand the cost of government overreach on small businesses.

For station owners, this mandate is a lose-lose situation. Upgrading tanks and pumps for E-15 compliance will be costly. Per Barton’s article, an estimated 25% of licensed stations in Iowa have spent between $100-150 million to upgrade their tanks and equipment to comply with the mandate. If they don’t, they face a $1,000 daily fine — or closure — after the law goes into effect. Stations will likely spend over half a billion dollars on upgrades by year’s end. While E-15 may be slightly cheaper at the pump, since the demand for gas itself is not increasing, stations will have to raise prices to recover their costs, leaving consumers with little to no real savings.

Meanwhile, ethanol producers come out ahead, thanks to this government mandate that forces the market in their favor. Farmers work hard, but support for agriculture shouldn’t come at the expense of everyone else. Farmers who raise beef, for example, will see their feed costs to go up because ethanol drives up corn prices, causing consumers to also pay more at the meat counter.

Iowa thrives when businesses and consumers have real choices, not one that picks winners and losers at the expense of small businesses, consumers, and entire communities.

Darla Chappell

St. Donatus