USDA Grain Transportation Report (6/9): ​Iowa Enacts Law Requiring Higher Blends of Ethanol and Biodiesel

On May 17, Iowa enacted a law requiring gas stations to offer gasoline containing 15-percent ethanol (E15).

Iowa is the first state in the nation to adopt such an E15 standard.

The law is intended to lower gas prices as it expands consumer access to gasoline blended with high shares of ethanol and biodiesel.

The law includes a range of tax credits and incentives for biofuel producers and fuel retailers.

Under the law, starting next year, any new or upgraded fuel infrastructure must be compatible with E85 (gasoline with 15-percent ethanol) and B20 (diesel with at least 20-percent biodiesel).

The additional grain needed to produce the E15 blend should increase the demand for truck transportation.

The new high-ethanol blends are also expected to lower fuel prices, which have reached historic highs in recent months.

This article comes from the U.S. Department of Agriculture's (USDA) June 9, 2022, Grain Transportation Report.