Analysis of State Report Shows E15 Could Save Iowans $50 Million Per Year
April 16, 2015
Press Contact: T.J. Page
If Homegrown E15 Were More Widely Available, Iowa Consumers Could’ve Pocketed Millions
JOHNSTON, IOWA – In an analysis of a recent Iowa Department of Revenue motor fuel report, the Iowa Renewable Fuels Association (IRFA) today revealed that if E15 was widely available Iowa drivers could save more than $50 million per year in fuel costs by taking advantage of the lower-cost, cleaner-burning fuel.
In its annual report on retail fuel sales, Iowa Department of Revenue data shows Iowa motorists purchased more than 1.2 billion gallons of E10. E15 is approved for use in model year 2001 and newer passenger vehicles and flex-fuel vehicles (FFVs), representing more than 80 percent of the fuel consumed in the U.S. On average, E15 is typically sold at a 5-cent discount to E10 in Iowa.
An IRFA analysis found that even with abnormally low petroleum prices:
- If only 20 percent of Iowa motorists used E15, Iowans could save $12.7 million per year
- If a modest 50 percent of Iowa motorists used E15, Iowans could save $31.7 million per year.
- If 80 percent of Iowa motorists used E15, Iowans would save $50.7 million per year.
“The economics are simple: the more Iowa motorists that have access to and are able to take advantage of low-cost E15, the more money consumers save,” stated IRFA Executive Director Monte Shaw. “Price is a big motivator when it comes to buying fuel, and cleaner-burning E15 is consistently priced at a discount to E10. If motorists across the state were able to utilize this safe, economical fuel, Iowa drivers would literally save millions of dollars of their hard-earned money, enabling them to spend it elsewhere in the state.”
To view the department’s full 2014 Retailers Motor Fuel Gallons Annual Report, please click here.
More than 100 million miles have successfully been driven on E15, a blend of 15 percent ethanol and 85 percent gasoline now available at 31 locations in Iowa. E15 is approved by the U.S. Environmental Protection Agency (EPA) for use in all 2001 and newer passenger vehicles, as well as flex-fuel vehicles (FFVs). IRFA works with retailers to ensure they comply with all federal and state E15 regulations.
Iowa is the nation’s leader in renewable fuels production. Iowa has 43 ethanol refineries capable of producing more than 3.8 billion gallons annually, including 22 million gallons of annual cellulosic ethanol production capacity and one cellulosic ethanol facility currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.
For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org