FOR MORE INFORMATION:
Monte, 515-252-6249

FOR IMMEDIATE RELEASE
October 30, 2009

Iowa Ethanol Sales Declining as Nation Ramps Up

Sales Far Below State Renewable Fuels Standard Goal

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today announced that Iowans chose E10, a 10 percent ethanol and 90 percent gasoline blend, only 71 percent of the time during September of 2009 according to Iowa Department of Revenue (IDR) figures.  This is below recent trends.  According to the Washington, DC-based Renewable Fuels Association, around 80 percent of gasoline sold in the U.S. today is ethanol-blended.

“Iowa’s ethanol sales are lagging behind the nation, Iowa history, and the 2009 goal of the Iowa Renewable Fuels Standard,” said Monte Shaw, IRFA Executive Director.  “While the rest of the country has steadily increased ethanol use since 2006, Iowa has at best held even and now seems to be falling back.  In 2006, Iowa was one of the nation’s leaders in ethanol sales.  Today, Iowa does not lead. Iowa is not average.  Iowa is below average.  These disappointing statistics should force a complete reexamination of how Iowa intends to move forward to be a leader in the use of ethanol, not just the production.”

In 2006, the Iowa Legislature adopted the 25% Iowa Renewable Fuels Standard.  The legislation ties retailer tax credits to the achievement of a renewable content goal that starts at 10 percent in 2009 and stair-steps up to 25 percent by 2019.  The program provided three years of infrastructure grants and E85 and biodiesel tax credits to help retailers prepare for the 2009 standard.  A retailer calculates its renewable content by comparing all ethanol and biodiesel gallons to total gasoline sales.  For example, 71 percent E10 sales, with no E85 or biodiesel sales, would equate into a 7.1 percent renewable content.

Shaw added, “Those retailers offering consumers biodiesel, mid-level ethanol blends, or E85 should easily achieve the 10 percent threshold set by the Iowa Renewable Fuels Standard.  But with only three months of overall sales data to go, it is clear that the state as a whole will not only miss the first year target, but could likely take a step back.”

According to IDR figures, Iowa E10 sales are trending down:

E10 Sales in Iowa

2007                    74%

2008                    75%

2009 (YTD)       73%

2009 (Sept.)       71%

Iowa is the leader in renewable fuels production.  Iowa has 40 ethanol refineries capable of producing nearly 3.3 billion 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.