Iowans for Consumer Fuel Choice

Frequently Asked Questions About
Biofuel Mandates And Consumer Fuel Choice

Q: What is Iowans for Consumer Fuel Choice?
A: Iowans for Consumer Fuel Choice is a coalition of public, private, business and labor organizations that whole heartedly supports renewable fuels but vehemently opposes product mandates that will manipulate our free market system and increase fuel costs for Iowans.

Q: Why have you created this coalition?
A: Iowans for Consumer Fuel Choice was established to create a voice of reason of the citizens of Iowa in response to legislative action to impose mandates on biodiesel (SF 464) and ethanol (SF 2107).

Q: Why are you opposed to biofuel mandates?
A: Forcing Iowans to use biofuels creates upside-down economics, eliminating the checks and balances of fair competition and will drive up fuel prices. Removing consumer choice at the pump and mandating biofuel usage is simply a bail out for a select group of investors at the expense of all Iowans. Iowa’s leadership position with renewable fuels must be driven first and foremost by public interest. Iowans are smart, savvy consumers and we support their right to fuel choice.

Q: Why do you assume biofuel mandates will increase fuel costs?
A: Iowa retailers buy fuels directly from Iowa ethanol plants, Iowa biodiesel plants and the major oil refineries. The ability to supply Iowa’s market demands with various fuel options ensures competitive pricing approaches from all three sources.

We also have seen the actual impact when the free market system is altered. In Minnesota, where they recently imposed a biodiesel mandate, pricing data from the Oil Price Information Service (OPIS) reveals the cost of Minnesota diesel fuel is on average 7 cents to 9 cents higher per gallon than fuel costs here in Iowa.

Q: Wouldn’t biofuel mandates produced in Iowa have a positive impact on our state’s overall economy?
A: An economic study — issued by Drake University economics professor, Wayne Newkirk, Ph.D. — evaluates the impact of a biofuel mandate identifies costs of $100 million in lost revenues, lost jobs, increased cost of distribution for staples such as groceries and more.

Q: Isn’t it true that our state is falling behind in terms of ethanol use?
A:Advocates of the biofuel mandates have devalued current levels of biofuel consumption in Iowa, and claim that sales are declining. Based on the latest Iowa Department of Revenue fuel usage figures, E10 and E85 ethanol products represent 82.3 percent (1.269 billion gallons) of the state’s total fuel volume, with straight gasoline accounting for the remaining 273.11 million gallons. Historical data from the Department of Revenue shows that Ethanol-blended gasoline has increased as a share of Iowa gasoline sales over the past 13 years, with E10 increasing steadily over the decade while E85 experienced the largest increase between 2005 and 2008.