December 04, 2013

Third Quarter Iowa E85 Sales Nearly Double First Quarter Numbers



      The Iowa Renewable Fuels Association (IRFA) today announced that third quarter sales of E85 in Iowa were the second highest on record, doubling first quarter 2013 numbers. Iowans purchased more than 3.61 million gallons of E85 in the third quarter of 2013, nearly double the 1.83 million gallons of E85 purchased in the first quarter of 2013 and up from the 2.62 million gallons of E85 sold in the second quarter, according to Iowa Department of Revenue data.

      “These astounding third quarter sales numbers prove the federal Renewable Fuel Standard (RFS) was working, but now the EPA is trying to pull the rug out from underneath us,” stated IRFA Executive Director Monte Shaw. “During the third quarter, Iowa motorists using E85 routinely saved $1.00 per gallon compared to regular gasoline. But when the EPA announced their proposal to gut the 2014 RFS numbers, they gutted the incentive for retailers to promote low-cost E85.  We saw the E85 price savings pull back, and it won’t be surprising if fourth quarter E85 sales taper off as well.”

      The IRFA recently launched a wholesale E85 price reporting service to promote greater transparency for retailers and distributors of E85 in order to aid retailers in supplying their customers with the lowest-cost E85 available.

      The IRFA publishes Monday’s wholesale E85 prices every Tuesday at http://iowarfa.org/E85PastPriceProgram.php. E85 suppliers wishing to have their price posted should contact T.J. Page with the IRFA at 515-252-6249 or tpage@IowaRFA.org. To be eligible for listing, the supplier's price must: be publicly posted elsewhere; be available to any retailer or supplier; not be restricted by gallonage caps.  E85 is defined in state law as a blend of between 70 and 85 percent ethanol with gasoline.

       Iowa is the leader in renewable fuels production. Iowa has 42 ethanol refineries capable of producing over 3.8 billion gallons annually, with three cellulosic ethanol facilities 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.


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